Liquidity Bootstrapping

When private market makers collaborate with Native and seek to utilize the inventory in Native Credit Pool to facilitate swaps, they are obligated to deposit collateral in order to obtain credits. This collateral is in the form of Native Credit Pool base tokens.

Consequently, the collateral locked by private market makers effectively functions as a portion of liquidity known as bootstrapping liquidity that is automatically paired with all issuer assets.

This implies that any listed assets with a health ratio equal or exceeding 1 can benefit from the depth and liquidity offered by private market makers, even from day one.