> For the complete documentation index, see [llms.txt](https://supralend.gitbook.io/supralend/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://supralend.gitbook.io/supralend/products/money-market.md).

# Money Market

The Supralend Money Market enables **over-collateralized lending and borrowing**, allowing users to deposit assets to earn yield or borrow assets against collateral.

**How It Works:**

* **Lending**:\
  Users can supply Asset Tokens to a lending pair. In return, they receive a redeemable claim that accrues interest over time. As borrowers pay interest, the lender’s balance of Asset Tokens increases proportionally.
* **Borrowing**:\
  To borrow, users must deposit Collateral Tokens into a designated pair. They can then borrow Asset Tokens up to a specific **Loan-to-Value (LTV)** ratio. Each asset pair has an assigned LTV limit that governs how much can be borrowed relative to the collateral value.

**Interest Rate Model:**

Supralend uses a **jump interest rate model**:

* Interest rates increase gradually and linearly as utilization rises.
* Once utilization crosses a predefined threshold, the interest rates for both suppliers and borrowers increase sharply.
* This mechanism helps maintain healthy liquidity and incentivizes optimal capital allocation.

**Liquidation:**

If a borrower's LTV exceeds the **Maximum LTV**, their position becomes eligible for **liquidation**. This ensures the safety of lender funds and the solvency of the protocol.

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[Assets supported](/supralend/products/money-market/assets-supported.md)
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[Oracles](/supralend/products/money-market/oracles.md)
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[Contract Addresses](/supralend/products/money-market/contract-addresses.md)
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