Create a Market

This tutorial guides you through the process of creating and configuring a market in your Morpho vault.

Deploying a Market via Etherscan

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%.

Important points

Below is a short list of things to have in mind when creating a new market:

DAO-Approved LLTV

The LLTV a market creator is expecting to use has to be enabled. At first, the following LLTVs have been DAO-approved:

Vault as Asset

If you consider using a vault as loan or collateral token, please read the section below about Vault as Asset

Prevent Zero Utilization Rate Decay at Deployment

Issue: At deployment, a market starts with 0% utilization, which causes interest rates to quickly decay to extremely low levels, creating a poor user experience.
Solution: Add $1 of supply and borrow $0.90 immediately after market creation to establish 90% utilization (matching the Adaptive Curve IRM target). This prevents rate decay and ensures market stability from the start.
Best practice: Batch the market creation with supply and borrow transactions to achieve your desired utilization target. While 90% is recommended for the default IRM, other targets may be appropriate depending on your specific rate goals.
Warning: Without this intervention, markets intended for future use may already have extremely low rates by the time users start interacting with them, requiring significant time to return to reasonable levels.

You are done.

When creating a market, a CreateMarket event is emitted with the market id:

To retrieve the market parameters from this id:

Example: Using the id: 0xb323495f7e4148be5643a4ea4a8221eef163e4bccfdedc2a6f4696baacbc86cc