🗓️New Market Listing and Delisting

Understanding how new markets are introduced and retired in the Fixed-Rate Lending Protocol

Overview

The Fixed-Rate Lending Protocol maintains a dynamic marketplace by carefully managing the introduction of new markets and the retirement of existing ones. Secured Finance aims to provide a diverse range of loan assets to its users while ensuring orderly transitions. This page outlines the processes for both listing new assets and delisting existing ones.

What You'll Learn

• How new markets are introduced using the Itayose method

• How pre-open orders facilitate fair price discovery

• How orderbooks expand over time for newly listed assets

• How assets are delisted in an orderly fashion

• How loan expiry and redemption work during the delisting process

Key Components

• Itayose Method: The fair price discovery mechanism used when listing new markets

• Pre-Open Orders: The process for placing orders before a market officially opens

• Orderbook Expansion: How orderbooks grow over time for newly listed assets

• Delisting Process: The orderly retirement of markets

Listing Process

Itayose Method

The Itayose method is used for fair price discovery when listing new markets. For more details, see the Itayose Fair Price Discovery page.

Pre-Open Orders

Seven days before the launch of new tenor periods for a newly listed asset, users can place pre-open 'limit orders' on one side of the orderbook. The orderbook is frozen one hour before the market opens, preventing any further actions like placing, amending, or canceling orders.

Orderbook Expansion

Initially, four orderbooks are opened, representing approximately a 1-year duration. Every week, an additional 3-month orderbook is added, eventually expanding to eight orderbooks to cover a 2-year duration, aligning with other assets on the platform.

Delisting Process

Auto-Rolling Cessation

The first step in the delisting process is to stop the Auto-Rolling feature for the asset in question. This means that matured loans will not be automatically reinvested into the nearest 3-month bucket.

Loan Expiry

Loans for the delisted asset will be allowed to expire naturally, without any forced liquidation or closure.

Repayment and Liquidation

After the loan's maturity, borrowers have a one-week window to repay their debt. Failure to do so will result in the liquidation of the borrower's collateral, ensuring lenders can recover their funds and maintain protocol stability.

Asset Redemption

Finally, after the 7-day repayment period, lenders can redeem their entire asset along with the accrued interest.

Trading will still be available for those who wish to unwind or clean up their positions even under the delisting process.

By following these procedures, Secured Finance ensures a smooth transition for both listing and delisting assets, maintaining the integrity and stability of the marketplace.

Related Resources

• Market Dynamics

• Auto-Rolling

• Itayose Fair Price Discovery