> ## Documentation Index
> Fetch the complete documentation index at: https://docs.mob.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# Lending

> Money market design, markets, and the interest rate model.

## 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.