Native Credit Pool
The marketplace where LP-supplied capital fuels credit-based trading
Native Credit Pool is a dynamic credit marketplace where capital from LPs is transformed into credit, used by Native's network of PMMs through the Credit Margin Engine (CME).
The following is a conceptual example of how the Credit Pool is used:
As LPs deposit liquidity, PMMs gain the necessary assets for market-making activities.
This increased liquidity enables PMMs to offer more competitive quotes, especially for large trade sizes.
Improved pricing attracts more traders, driving up trading volumes.
As volumes increase, market makers access additional credits from Native Credit Pool to fulfil these transactions.
The fees market makers pay for borrowing capital are distributed to LPs as credit APY, boosting their returns.
These higher yields attract more LPs, creating a positive feedback loop that continuously drives liquidity and yield growth.
For liquidity providers
✨ Supply or borrow assets via https://native.org/app/markets/ today:
User guideResources
How does Supply work?How does Borrow work?How does Liquidations work?What safety measures does Native have in place?For market makers
💧 Join us as a market maker and integrate with Native today:
GuideResources
What's credit-based inventory?How do I market make on Native?How are fees charged?Oracles
Native uses RedStone Oracles as the primary solution for asset pricing. RedStone is a Modular Oracle that delivers frequently updated, reliable, and diverse data feeds in a few models. Native utilizes the Core model in which the data is automatically appended to user transactions.
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