# 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). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.townsq.xyz/crosschain-money-market/crosschain-money-market-and-asset-pool.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.