# Liquidity Pool On MORE Markets, every liquidity pool functions like a self‑contained, on‑chain money market. Inside each pool, two kinds of participants meet: * **Suppliers** contribute tokens, swelling the pool’s reserves. * **Borrowers** post more collateral than they wish to borrow, unlocking those reserves on demand. ## **Pool Parameters** While MORE Markets is working towards a permissionless mode, for the moment, community governance signs off on a set of parameters for every pool: reserve caps, loan‑to‑value ratios, interest‑rate models, liquidation thresholds, and more. These choices strike a balance between healthy liquidity and prudent risk. ## **Functionality** Immutable smart contracts encode the rules and run the show: * **Borrow / repay**: executed atomically without middlemen. * **Interest accrual**: suppliers’ yields and borrowers’ rates tick in real time. * **Liquidations**: positions that drift beyond safety margins are unwound automatically. Because all logic lives on the blockchain, every movement of capital is transparent, permissionless, and verifiable. Suppliers earn native yield beginning when they deposit. Borrowers tap instant liquidity without giving up ownership of their collateral. And because governance decisions flow straight into code, MORE Markets delivers a lending experience that is open, efficient, and secure—by design. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.more.markets/more-markets/editor-1/liquidity-pool.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.