Markets Overview
Fira is modular lending infrastructure. Each market is an independent instance with its own collateral, loan token, parameters, and risk profile.
What Defines a Market
Every Fira market is defined by:
Collateral asset
The token deposited by borrowers
Loan asset
The token borrowed against collateral
Max LTV (Loan-to-Value)
Maximum borrowing ratio
LLTV
Liquidation LTV — the threshold at which positions can be liquidated
Oracle
Price feed determining collateral value
Maturity
Term length for fixed-rate positions
Protocol fee
Fee charged by the protocol (in APR)
IRM
Interest Rate Model governing rate discovery
This modular design means Fira can support any pair of assets — stablecoins, yield-bearing tokens, LSTs, or governance tokens — each with parameters calibrated to the specific risk profile of that pair.
V1 Market Types
Fira V1 introduces three market types, each serving different credit needs:
Fixed-Rate Markets
Borrowers and lenders lock rates for a defined maturity via Bond Tokens (BTs). BTs trade at a discount before maturity on the fixed-rate AMM. The discount determines the implied rate.
Floating-Rate Markets
Variable-rate borrowing and lending without maturity constraints. Rates adjust dynamically based on utilization — similar to existing DeFi lending protocols, but integrated into Fira's infrastructure.
Dynamic Lending
LPs provide liquidity to the fixed-rate AMM while unused liquidity is rehypothecated to floating-rate vaults. LPs earn both trading fees and lending yield. Coupon Tokens (CTs) represent the yield portion and are tradable.
Rehypothecation · Fixed-Rate Markets — Protocol · Floating-Rate Markets — Protocol
Related
Architecture Overview — How markets connect to the broader system
Token Mechanics — BT, CT, and FW token mechanics
Risk Framework — How risk is assessed per market
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