> ## Documentation Index
> Fetch the complete documentation index at: https://docs.berachain.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Market

> Lending pool primitive: collateral/loan pairing, supply and borrow positions, risk parameters, and market creation.

A **market** is a lending pool that pairs one collateral asset with one loan asset. Lenders and borrowers interact in that single venue. Bend uses [Morpho Market V1](https://docs.morpho.org/learn/concepts/market/#what-is-a-morpho-market-v1) as its base.

## Overview

In a market you can:

* **Lend assets** and earn interest on deposits
* **Borrow assets** by posting collateral
* **Trade positions** through market mechanisms

Each market has its own parameters and runs independently. Risk stays inside that market and does not spread across the protocol.

<Frame>
  <img src="https://mintcdn.com/berachain-422fce37/spFyXF2YSQlNtmpH/images/bend/market-overview.png?fit=max&auto=format&n=spFyXF2YSQlNtmpH&q=85&s=3f697d71469d6c0febb07b2600a035ce" alt="Bend markets overview" width="3352" height="2056" data-path="images/bend/market-overview.png" />
</Frame>

Open [Bend markets](https://bend.berachain.com/borrow) to lend or borrow.

## Key characteristics

### Isolated risk

* Each market operates independently
* Risks are contained within individual markets
* No cross-market contamination of losses

### Immutable parameters

* Market rules are set at creation and cannot be changed
* Provides predictable behavior for participants
* Eliminates systematic risks from parameter changes

### Asset pairing

* One collateral asset paired with one loan asset
* Clear separation of lending and borrowing activities
* Simplified risk assessment and management

## Market components

### Core assets

1. **Collateral Asset**: The asset users deposit to borrow against
2. **Loan Asset**: The asset users can borrow from the market

### Market parameters

1. [**Loan-to-Value (LTV) Ratio**](/bend/learn/ltv): Value of loan against collateral
2. **Liquidation Loan-to-Value (LLTV)**: The LTV at which positions become eligible for liquidation
3. [**Interest Rate Model**](/bend/learn/irm): Formula determining borrowing costs and lending yields
4. [**Oracle**](/bend/learn/oracle): Price feed for collateral valuation
5. **Market Cap**: Maximum capacity for lending and borrowing

## Market operations

### For lenders

<Note>
  You cannot supply directly to a market. You supply to a [Vault](/bend/learn/vault) managed by a
  [Curator](/bend/learn/curator), which allocates assets across markets.
</Note>

* **Supply**: Deposit loan assets to earn interest
* **Withdraw**: Remove supplied assets and accrued interest

### For borrowers

* **Borrow**: Take out loans against deposited collateral
* **Repay**: Return borrowed assets to reclaim collateral
* **Manage position**: Monitor health factor and add or remove collateral

### For liquidators

* **Liquidate**: Repay debt in exchange for discounted collateral
* **Maintain market health**: Keep borrowers adequately collateralized

## Market creation

### Permissionless market creation

Bend allows permissionless market creation. You can create isolated markets, each defined by the five key parameters above.

Traditional lending platforms often:

* Require governance approval to list assets or change parameters
* Use a single lending pool, so risk is shared across the protocol

On Bend, each market has immutable parameters set at creation. The loan-to-value (LTV) ratio and interest rate model must come from governance-approved options. This keeps risk isolated, supports new assets quickly, and keeps behavior predictable.

<Note>
  To list a market on the Bend UI, submit a vault whitelist proposal (including allocation) via the
  [curator application form](https://ufdx3v8g7qg.typeform.com/to/pg2P0ndW).
</Note>