New Market Listing and Delisting
Understanding how new markets are introduced and retired in the Fixed-Rate Lending Protocol
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Understanding how new markets are introduced and retired in the Fixed-Rate Lending Protocol
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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.
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
: 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
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.
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.
Loans for the delisted asset will be allowed to expire naturally, without any forced liquidation or closure.
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.
Finally, after the 7-day repayment period, lenders can redeem their entire asset along with the accrued interest.
By following these procedures, Secured Finance ensures a smooth transition for both listing and delisting assets, maintaining the integrity and stability of the marketplace.
The Itayose method is used for fair price discovery when listing new markets. For more details, see the page.
The first step in the delisting process is to stop the feature for the asset in question. This means that matured loans will not be automatically reinvested into the nearest 3-month bucket.