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A market is a lending pool that pairs one collateral asset with one loan asset. Lenders and borrowers interact in that single venue. Bend uses Morpho Market V1 as its base.

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Overview

In a market you can:
  • Lend assets and earn interest on deposits
  • Borrow assets by posting collateral
  • Trade positions through market mechanisms
Each market has its own parameters and runs independently. Risk stays inside that market and does not spread across the protocol.
Bend markets overview
Open Bend markets to lend or borrow.

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Key characteristics

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Isolated risk

  • Each market operates independently
  • Risks are contained within individual markets
  • No cross-market contamination of losses

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Immutable parameters

  • Market rules are set at creation and cannot be changed
  • Provides predictable behavior for participants
  • Eliminates systematic risks from parameter changes

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Asset pairing

  • One collateral asset paired with one loan asset
  • Clear separation of lending and borrowing activities
  • Simplified risk assessment and management

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Market components

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Core assets

  1. Collateral Asset: The asset users deposit to borrow against
  2. Loan Asset: The asset users can borrow from the market

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Market parameters

  1. Loan-to-Value (LTV) Ratio: Value of loan against collateral
  2. Liquidation Loan-to-Value (LLTV): The LTV at which positions become eligible for liquidation
  3. Interest Rate Model: Formula determining borrowing costs and lending yields
  4. Oracle: Price feed for collateral valuation
  5. Market Cap: Maximum capacity for lending and borrowing

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Market operations

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For lenders

You cannot supply directly to a market. You supply to a Vault managed by a Curator, which allocates assets across markets.
  • Supply: Deposit loan assets to earn interest
  • Withdraw: Remove supplied assets and accrued interest

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For borrowers

  • Borrow: Take out loans against deposited collateral
  • Repay: Return borrowed assets to reclaim collateral
  • Manage position: Monitor health factor and add or remove collateral

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For liquidators

  • Liquidate: Repay debt in exchange for discounted collateral
  • Maintain market health: Keep borrowers adequately collateralized

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Market creation

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Permissionless market creation

Bend allows permissionless market creation. You can create isolated markets, each defined by the five key parameters above. Traditional lending platforms often:
  • Require governance approval to list assets or change parameters
  • Use a single lending pool, so risk is shared across the protocol
On Bend, each market has immutable parameters set at creation. The loan-to-value (LTV) ratio and interest rate model must come from governance-approved options. This keeps risk isolated, supports new assets quickly, and keeps behavior predictable.
To list a market on the Bend UI, submit a vault whitelist proposal (including allocation) via the curator application form.