What's credit-based inventory?

Native Credit Pool offers an innovative solution that allows market makers to provide pricing capabilities without the need to manage inventory availability. This feature enables market makers to support leverage trading as long as their credit remains healthy.

Market makers can seamlessly borrow the 'buy token' (quote token) to facilitate user swaps, while returning the 'sell token' (base token) to Native Credit Pool. To close their positions, market makers can settle by paying off all short positions and assuming long positions.