Lending market
money market
A pool-based protocol where suppliers earn interest from borrowers, with rates set algorithmically by utilisation.
Aave v3, Compound v3, Morpho Blue, Spark, and Venus are the dominant venues. Risk inputs: collateral mix quality, oracle reliability, parameter governance, isolation design, exposure to RWA / off-chain credit.
Related terms
- AaveDecentralised lending market — the largest by TVL — with stablecoin supply and borrow markets across 12+ chains.
- CompoundOne of the original DeFi lending markets — pioneered the cToken model and on-chain governance.
- MorphoA modular lending primitive — Morpho Blue isolates each market, with curators (e.g. MetaMorpho) building risk-managed vaults atop.
- UtilisationBorrowed assets / supplied assets in a lending market — drives the supply / borrow rate via a kinked curve.
- Borrow rateThe interest rate paid by borrowers in a [[lending-market]], typically a function of pool [[utilisation]].