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.

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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?

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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?

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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.