# 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.

{% content-ref url="/pages/yjaaUueMcbS2yo89M7wb" %}
[Assets supported](/supralend/products/money-market/assets-supported.md)
{% endcontent-ref %}

{% content-ref url="/pages/EVuREY0qC9DF3f2ht0zC" %}
[Oracles](/supralend/products/money-market/oracles.md)
{% endcontent-ref %}

{% content-ref url="/pages/eUGgYuHk5LHDoxbrsmSd" %}
[Contract Addresses](/supralend/products/money-market/contract-addresses.md)
{% endcontent-ref %}


---

# 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://supralend.gitbook.io/supralend/products/money-market.md?ask=<question>
```

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.