Lotus Markets
Lotus is an onchain lending protocol that lets lenders and borrowers meet on a risk curve inside a single market. Instead of creating separate pools for every risk setting, Lotus uses tranches to offer multiple risk levels while keeping liquidity connected.
If you lend
You choose a market.
You choose a tranche (your risk level).
You supply the market’s loan token to that tranche.
Lenders get control over their risk-return profile
If you borrow
You choose a market.
You choose a tranche (your risk level).
You supply the tranche’s collateral token and borrow the market’s loan token.
Borrowers get control over their loan's terms and rate
What makes Lotus different
A market contains multiple tranches ordered by risk (senior to junior).
Unused liquidity from junior tranches can support more senior borrowers. This keeps markets deep without forcing everyone into the same risk profile.
Interest and loss allocation follow the tranche structure, so risk and reward stay aligned.
The main concepts you’ll see in Learn
Markets and tranches: how the protocol organizes lending and borrowing.
Liquidity flow: how liquidity is shared across tranches.
Utilization and rates: how demand affects rates.
Liquidations and bad debt: what happens when positions become unhealthy.
Next: Read Markets and tranches to understand what you’re choosing when you pick a market and a tranche.
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