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Money Market Model

Mobius uses pooled lending on the programmable layer. Lenders deposit assets (e.g., USDC) into shared pools and earn interest from borrowers. Non-rehypothecation: Collateral is never lent out. Borrowed funds and collateral stay inside each borrower’s Credit Account, isolating risk and simplifying liquidations for lenders.

Pool Architecture

Each lending pool:
  • Accepts deposits from lenders and mints LP tokens representing their share
  • Lends to Credit Accounts via the credit system
  • Accrues interest based on utilization (borrowed / total supplied)
  • Allows lenders to withdraw at any time (subject to available liquidity)

Markets

Each market specifies its accepted collateral set and a debt token. All lenders and borrowers inside a market share its liquidity. The initial Core Market targets blue-chip collateral (BTC, ETH, and native venue tokens) against USDC debt. Future permissionless markets can be launched with custom collateral/debt pairs to serve specialized strategies.

Interest Rate Model

Interest rates are determined by pool utilization:
  • Low utilization: Rates stay low to attract borrowers
  • High utilization: Rates increase to incentivize repayment and attract more lenders
  • Kink point: A utilization threshold where the rate curve steepens sharply
Interest rate model parameters are governed by token holders.