Native Documentation
  • introduction
    • Welcome
    • What is Native
      • Benefits for key players
    • Credit Margin Engine
    • Native Credit Pool
    • Build with Native
      • Credit API Introduction
      • Market Makers
        • Guide
          • REST API Integration
            • Orderbook
            • Firm-Quote
            • Sign-Quote
            • On-chain events for swap
            • Testing your API
          • WebSocket Integration
            • Orderbook
            • Firm-Quote
            • Sign-Quote
            • On-chain events for swap
          • Using Native Credit Pool
        • Credit API
          • GET Market maker settings
          • GET Token settings
          • GET Market maker positions
          • GET Available borrows
          • POST Verify settlement
          • POST Request settlement
          • POST Cancel settlement
          • POST Settlement status
          • POST Verify collateral removal
          • POST Request collateral removal
          • POST Cancel collateral removal
          • POST Collateral removal status
          • POST Liquidation
          • GET All market maker settings
      • Relayers
        • Guide
        • Swap API
          • GET Orderbook
          • GET Indicative quote
          • GET Firm quote
          • Bridge API
            • GET Indicative quote
            • GET Firm quote
            • GET Refund
            • GET Transaction history
            • GET Transaction status
        • Asset Issuers
        • Credit API Reference
        • System Status
      • Protocol
        • Addresses
        • Audits
      • Resources
        • Github
        • Business Source License
        • Media kit
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      On this page
      • For liquidity providers
      • For market makers
      • Oracles
      1. introduction

      Native Credit Pool

      The marketplace where LP-supplied capital fuels credit-based trading

      PreviousCredit Margin EngineNextCredit API Introduction

      Last updated 4 months ago

      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 guide

      Resources

      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:

      Guide

      Resources

      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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