Crosschain Money Market & Asset Pool

TownSquare's Crosschain Money Market uses modular liquidity from the Lending Liquidity Vault. Some Lending Liquidity Vault curated by TownSquare and others choose the crosschain money market as the primary liquidity market for yield on the respective chains.

The TownSquare Money Market features the following characteristics in its liquidity design:

• Multichain liquidity sourcing

The Crosschain Money Market serves as a yield source for lending asset on different chains for different liquidity sources, including TownSquare's Lending Liquidity Vaults and other strategy vaults.

• Natively modular with TownSquare's Leveraged Yield Vault

TownSquare's Leveraged Yield Vault utilizes the liquidity available in the Money Market directly for running loop strategies to ensure optimized rates.

• Dynamic collateral factors for correlated and uncorrelated assets

Collateral factor settings vary between correlated assets and uncorrelated asset pairs. Correlated assets allow for higher LTV (loan-to-value) ratios for higher capital efficiency (e.g. USDC & sUSDe) while uncorrelated asset pairs get a lower LTV.

• Single-asset loan & multi-asset risk management

Users can create loans with just one asset for risk isolation or loans with multiple assets like in a regular lending market. Multi-asset loans would have a dynamic collateral factor based on the collateral factors of the individual assets.

• Crosschain native

TownSquare's Crosschain Money Market's asset pools are directly built on crosschain messaging protocols including Layerzero and Wormhole, for optimal crosschain relay times. Relayers synchronize smart contracts across chains (e.g., updating deposit status, collateral status, updating yields, triggering cross-chain liquidations).