Markets

A market is a decentralized financial mechanism that allows users to participate as either liquidity providers or borrowers. These markets can be created by anyone, with the creator defining key parameters such as reserve configurations and collateralization thresholds. Liquidity providers contribute assets to the market, which borrowers can access by locking collateral in overcollateralized positions. In return, providers earn interest, while borrowers gain access to liquidity, all facilitated through automated smart contracts.

MORE markets operate on the Flow blockchain network, where market creators define parameters and reserve settings. Ideally, these decisions must strike a balance between ensuring adequate liquidity for market participants and managing risk exposure. Smart contracts enforce these parameters, automating essential processes such as borrowing, repayment, and liquidation without relying on intermediaries. This decentralized framework enables permissionless market creation while maintaining a trustless and resilient financial ecosystem.