money market

src/money-market.md

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+---
+title: "Money Market "
+description: "Money Market "
+sidebar_label: "Money Market "
+sidebar_position: 3
+---
+
+The Concrete Money Market is a decentralized lending and borrowing platform designed to provide users with secure capital efficiency and liquidity access. It allows users to supply assets, earn interest, and borrow against their collateral in a transparent and optimized environment.
+
+The platform was created to address the demand for a trusted lending infrastructure, particularly for DeFi users and blockchain partners who require a reliable, audited money market.
+
+This guide explains how to use the **Concrete Money Market**, its key features, risk management measures, and collateralization process.
+
+## Why Concrete Money Market?  
+
+The Concrete Money Market was developed to solve a major gap in DeFi:  
+- Many blockchain projects and ecosystem partners needed a reliable lending market, but they lacked the resources and expertise to build and secure one.
+- Allow Concrete Earn depositors to access liquidity by using their ctTokens as collateral—enabling borrowing without interrupting yield-generating positions.
+- Instead of relying on third-party platforms, the team decided to create its own money market by forking AAVE v3, ensuring trusted deployment, security, and integration with Concrete’s DeFi ecosystem.
+
+### Key User Groups  
+
+1. **Liquidity Providers (Lenders)** – Users who supply assets to the market and earn interest.
+2. **Borrowers** – Users who borrow against their deposited collateral to access liquidity.
+3. **Blockchain Partners** – Projects seeking a trusted, deployable lending market for their users.
+4. **DeFi Market Participants** – Users who use recursive borrowing (looping strategies) to maximize capital efficiency.
+
+### Key Features
+
+- **Supply & Borrow Assets** – Deposit assets to earn interest or borrow against your holdings.  
+- **Collateralized Borrowing** – Maintain liquidity without selling assets.  
+- **Optimized Liquidation Protection** – Ensures efficient and fair liquidation mechanisms.  
+- **Multi-Chain Support** – Expanding across multiple blockchain ecosystems.  
+- **Robust Risk Management** – Automated monitoring, oracle-based pricing, and liquidation incentives protect against risk.
+
+## How to Use the Concrete Money Market  
+
+### Dashboard
+
+The **Dashboard** provides a snapshot of:
+
+- **Portfolio Value**: The total worth of supplied and borrowed assets.
+- **Net APY:** Interest earned from supplied assets minus borrowing costs.
+- **Your Supplies & Borrows:** An overview of active deposits and loans.
+- **Viewing Transactions:** all Transactions – Logs deposits, withdrawals, and borrowings with export Options – Download transaction history in CSV or JSON format.
+
+![](/img/money-market-1.png)
+
+**Networks:**
+- **Ethereum Concrete Money Market** – Primary lending market on Ethereum.
+
+### Markets
+
+The **Markets** ta provides an overview of available assets, their supply and borrow metrics, and interest rates** within the lending protocol.
+
+![](/img/money-market-6.png)
+
+Here’s what it displays:
+
+1. **Top-Level Market Summary**
+   - **Total Market Size** – The total value of assets supplied to the market.
+   - **Total Available Liquidity** – The portion of the supplied assets that are not currently borrowed and can be withdrawn or borrowed.
+   - **Total Borrows** – The total amount of assets currently borrowed by users.
+
+2. **Asset-Specific Details**
+   - **Asset Name & Symbol** – The digital assets available for supply and borrowing, such as Ethereum (ETH), Wrapped Bitcoin (WBTC), Lombard Staked Bitcoin (LBTC), and stablecoins like USDT and USDC.
+   - **Total Supplied** – The total amount of an asset deposited in the market.
+   - **Supply APY (Annual Percentage Yield)** – The interest earned by users supplying the asset.
+   - **Total Borrowed** – The amount of each asset currently borrowed.
+   - **Borrow APY (Variable & Stable)** – The interest rates borrowers must pay for borrowing the asset.
+
+3. **Search & Filtering**: a search bar allows users to find specific assets quickly using name, symbol, or contract address.
+
+4. **Details Button**: clicking **"Details"** provides a deeper breakdown of asset-specific parameters, including Loan-to-Value (LTV), liquidation thresholds, and historical performance.
+![](/img/money-market-2.png)
+
+## Supplying Assets (Lending)  
+
+Users can supply assets to earn interest and use them as collateral:
+1. Connect your wallet.
+![](/img/money-market.png)
+2. Choose an asset and click Supply.  
+3. Confirm the transaction in your wallet.  
+
+Once supplied, the asset appears in the **"Your Supplies"** section.
+
+**Available Assets to Supply:**
+- Asset List – Displays supported assets (ETH, WBTC, USDC, etc.).  
+- APY Rates – Shows interest rates earned on supplied assets.  
+- Collateral Eligibility – Indicates whether an asset can be used as collateral.
+
+![](/img/money-market-4.png)
+
+## Borrowing Assets
+
+Users can borrow assets by using their supplied collateral:
+
+1. Supply assets to the platform.  
+2. Go to "Assets to Borrow" and select an asset.  
+3. Click "Borrow" and confirm the transaction.  
+
+Once borrowed, your loan will appear in the **"Your Borrows"** section.
+
+**Available Assets to Borrow**
+- Collateral Requirement – Users must first supply assets before borrowing.  
+- APY Rates – Interest rates applied to borrowed assets.  
+- Loan-to-Value (LTV) Ratio – Determines borrowing limits based on supplied collateral.
+
+## Market Statistics & Risk Management  
+
+The Market Overview provides real-time financial data about the lending pools.  
+
+- Total Reserve Size – Total liquidity available in the protocol.  
+- Utilization Rate – The percentage of supplied assets being borrowed.  
+- Oracle Price Feeds – Ensures accurate, real-time asset pricing.
+
+
+**Concrete Money Market employs multiple mechanisms to protect users:**
+
+- **Hard Caps on Collateral** – Limits the maximum amount of any asset used as collateral.
+- **LTVs are manually set** based on asset volatility, market liquidity, and internal risk assessments. While not variable in real time, they are periodically adjusted as needed. Meanwhile, APYs adjust dynamically based on market utilization to incentivize supply and discourage excessive borrowing.
+- **Automated Market Monitoring** – Off-chain monitoring bots detect and prevent bad debt.
+- **Oracle-Based Pricing (TWAP & Chainlink Feeds)** – Prevents price manipulation.
+
+![](/img/money-market-3.png)  
+
+## 5. Managing Your Position & Liquidation Protection
+
+Users can optimize and safeguard their positions through risk management tools.
+
+### Collateral & Borrowing Limits
+
+- Max LTV – Maximum borrowing power against collateral.  
+- Liquidation Threshold – The point where a position can be liquidated.  
+- Liquidation Incentives – Compensation for liquidators in case of forced liquidations.  
+
+### Liquidation Process
+
+If a user’s collateral drops below the liquidation threshold, their position may be liquidated.  
+
+How It Works:
+- A Market Maker Strategy ensures that collateralized assets can be liquidated efficiently at a discounted price, preventing bad debt accumulation.
+- Borrowers pay a penalty if liquidation occurs to compensate for the forced sale.
+- Liquidators profit from incentivized liquidation rewards.
+
+:::note
+Maintain a safe LTV ratio to avoid liquidation.
+:::
+
+## Future Developments & Enhancements  
+
+Concrete Money Market is constantly evolving with new features and optimizations.
+
+- Expand Asset Support – Adding more cryptocurrencies and tokens.  
+- Improve Liquidation Mechanisms – Enhancing efficiency in risk management.  
+- UI/UX Enhancements – Refining the user interface for better usability.