Borrow Market Lifecycle
This section defines the exact process followed when borrow-side parameters (e.g., LTV) must change within borrow markets.
Deployment
A market is deployed with fixed parameters:
Collateral asset
Loan asset
Maximum LTV
Liquidation threshold
Oracle
Interest rate model
These parameters are immutable. They cannot be modified after deployment.
The market becomes active.
Active Operation
Users:
Supply liquidity
Borrow against collateral
Maintain positions under the original risk configuration
Vaults may allocate capital to the market. All positions are governed strictly by the deployed parameters.
Parameter Change Requirement
If risk conditions require a different LTV or liquidation threshold:
The existing market is not edited
No in-place modification is possible
A new market must be created.
New Market Deployment
A new market is deployed with the updated parameters.
The original market remains live on-chain with its original configuration.
Both markets operate independently.
Routing Update
The system updates capital routing:
Frontend directs new borrow activity to the new market
Vault allocations shift to the new market
Incentives, if used, apply only to the new market
No new liquidity is directed to the original market.
Existing borrower positions remain unchanged.
Legacy Wind-Down
The original market transitions into passive status:
Borrowers repay or refinance voluntarily
Liquidity exits gradually
Liquidations continue under the original rules
There are no parameter changes.
Archive
When utilization approaches zero:
The market is marked legacy in documentation
UI may be reduced
The contract remains permanently accessible on-chain
Principle
Borrow parameters are immutable per market.
Parameter updates are implemented through new market deployment and capital migration.
No retroactive risk changes occur.
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