Markets
In Autara, a market is an isolated lending pool that matches a single collateral asset with a single loan asset.
This isolation ensures that any exploit, misconfiguration, or liquidation issue is contained within its specific market and cannot affect others. Unlike traditional multi-asset pools, where risks are shared across all deposits, Autara’s design minimizes systemic risk and protects lenders from cross-market exposure.
Market Parameters
Each market on Autara is created and configured by a market curator, who is responsible for setting key parameters. This curator effectively defines the market's economic structure and risk profile.
| Parameter | Description |
|---|---|
| Collateral Asset | The token deposited by users to secure their loans. Must be approved by the market curator during pool creation. |
| Loan Asset | The token users borrow against their collateral. May also be supplied by other users to earn yield. |
| Max LTV | The maximum allowable loan-to-value ratio, defining how much of the collateral's value can be borrowed. |
| Unhealthy LTV | The loan-to-value ratio at which a position becomes eligible for liquidation. |
| Interest Rate Model (IRM) | A dynamic function that adjusts borrow and supply rates based on market utilization. Curators select from supported IRMs or define a custom one. |
| Oracle | Price feed used to determine the real-time value of collateral and loan assets. Supports optional curator-managed confidence intervals. |
| Liquidation Penalty | A percentage range of the collateral that is transferred to liquidators and the protocol during liquidation to ensure solvency and incentivize timely liquidation. |
Fees
Autara charges a competitive 10% fee on the interest rate spread, with 5% allocated to the protocol for infrastructure and maintenance, and 5% to the market curator as an incentive for ongoing market oversight.
The interest rate spread refers to a portion of the borrow interest rate captured by the protocol as revenue.