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Tenor

What is Tenor?​

Tenor is a non-custodial platform for accessing onchain lending markets. It offers a simple user experience for borrowing and lending at fixed rates onchain with advanced functionalities for more sophisticated users. All transactions executed through Tenor are sent from the user's self-custodial wallet and settled transparently onchain using the Morpho protocol's immutable smart contracts.

Tenor offers a powerful interface for borrowers and lenders to access onchain fixed-rate, fixed-term markets and get matched peer-to-peer. Tenor also offers additional smart contracts features designed to offer more flexibility when creating bespoke offers or creating offers with custom execution conditions.

Products​

  • Fixed-rate borrowing: Enables borrowing at fixed rates for set terms, removing the need for constant position monitoring due to changing rates.
  • Fixed-rate lending: Supports lending at fixed rates for defined terms, allowing users to lock in a rate for a set period of time.
  • OTC: Lets borrowers and lenders create bespoke agreements outside of standardized markets.
  • Tenor Prime: Tooling for large-scale capital allocators and curators to have more control over how they allocate and manage their funds onchain. Tenor Prime offers organisational support, role based access, and advanced monitoring and reporting features.
  • Tenor Enterprise: Enterprise-grade features for exchanges, fintechs, and institutional integrators from white-label interfaces, renewal orchestration tools and access to the Tenor SDK and API.

Features​

With Tenor, users can opt-in to the following features:

  • Auto-renewal at maturity: Automatically renews a borrow position before maturity, either into a longer-dated fixed-term position on Morpho V2 or into an open term variable rate position on Morpho V1, eliminating the need for manual user intervention before maturity. Auto-renewal products minimize the risk of liquidation at maturity.
  • Conditional Execution: Create limit orders that execute only when specific conditions are met, such as:
    • Lend limits: Earn the variable rate on Morpho V1 while the lend limit order is waiting to get filled at a fixed rate on Morpho V2.
    • Borrow limits: Deposit collateral pro-rata to the amount borrowed at the time the borrow limit is filled by a lender.
  • Bespoke offers: Create OTC offers or request quotes from counterparties to borrow with bespoke terms. Tenor's OTC section allows users to create:
    • Whitelisted offers only acceptable by a set of counterparties.
    • Delayed liquidations offers with configurable grace periods that allow borrowers to re-collateralize or repay before being liquidated. This gives borrowers flexibility while reducing the risk of being liquidated immediately after a collateral price move.
    • Undercollateralized offers requiring the borrower to post no to minimal collateral.
  • Alerting: Receive email, Telegram, or SMS notifications for key events, including a position approaching its liquidation threshold, upcoming renewals, and more. This enables timely actions like rolling forward or topping up collateral to avoid liquidation. Users can also get notified when receiving OTC or renewal offers.
  • Market structure: Supports both variable‑rate and fixed‑rate markets and allows borrowing at fixed rates against variable‑rate positions, creating continuity between markets and improved liquidity.
  • Redundant Oracle Feeds: Provides price feeds with validation oracles that halt execution when the difference between the validation oracle and the primary oracle price feed exceeds a set threshold, adding redundancy and protecting users against oracle malfunctions.

Security​

Tenor is fully non-custodial. Users interact directly with the Morpho protocol smart contracts using their self-custodial wallet and remain in control of their assets at all times. Morpho and Tenor smart contracts are immutable and have been reviewed by leading security firms. For more details, see the risk and security section.