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How to create a market on Morpho?

1. Jump on the Morpho contract​

See the address section.

E.g: Ethereum mainnet address is 0xbbbbbbbbbb9cc5e90e3b3af64bdaf62c37eeffcb

2. Fill all attributes​

Jump on the createMarket function

  • loanToken: paste the address of the loan token,
  • collateralToken: paste the address of the collateral token,
  • oracle: paste the oracle address,
  • irm: paste the Interest Rate Model address,
  • lltv: the LLTV is defined with 18 decimals. 1e18 represents an LLTV of 100% (which is not enabled) and 945000000000000000 thus represents 94.5%.

The LLTV a market creator is expecting to use has to be enabled. At first, the following LLTVs have been DAO-approved: [0%; 38.5%; 62.5%; 77.0%; 86.0%; 91.5%; 94.5%; 96.5%; 98%]

To align with the 90% target utilization immediately, it's advised to add $1 of supply and then borrow $0.90. This not only ensures that the pool's utilization starts at 90% but also prevents the rate at uTarget from decreasing due to zero utilization, which can happen if a market remains unused (e.g., intended for future use in 7 days).

It's recommended to batch the market creation with supply and borrow transactions to match the utilization target of the Adaptive Curve IRM which is set at 90% utilization. However, other utilization targets can be aimed for, depending on the desired supply and borrow rates. Close monitoring is necessary until the market achieves substantial usage. This prevents rates from converging to either extremely low or high levels, which would take some time to return to reasonable levels.

Adhering to this practice will greatly improve the market user experience.

Market Creation Etherscan guide

3. Sign the transaction​

You are done.

Retrieve Market Id

Creating a market will emit an event: CreateMarket with the market id:

To retrieve the market parameters from this id, one has to paste the id into the idToMarketParams function on the Morpho contract.

For instance with the id:0xb323495f7e4148be5643a4ea4a8221eef163e4bccfdedc2a6f4696baacbc86cc

4. Create a market with a Morpho Vault as collateral​

Before doing so, please check the risk documentation related section.