Mechanics
Borrowing for any token and community-driven pooling.
Our protocol introduces a novel mechanism that enables borrowing for any token, unlocking lending markets for assets that traditionally lack deep liquidity. This is achieved through a community-driven pooling system, allowing token communities to establish their own borrow markets in a sustainable and efficient manner.
The system consists of two primary components:
- Pool provision, which creates a managed UniV3 LP position between TOKEN and DAI and deposits DAI into the Morpho pool.
- Collateralised Debt Module, which allows borrow of DAI using TOKEN as collateral.