Collateralized Money Markets
This lens is for lending systems where the real power is not borrow against collateral. It is who gets to define solvency, trigger liquidations, and decide how bad debt gets cleaned up.
Questions worth asking:
- Who chooses acceptable collateral, collateral factors, caps, and liquidation thresholds?
- Which oracle or valuation path decides whether a position is healthy, and who can swap that path out?
- Who actually captures liquidation rights: open keepers, privileged routers, pooled backstops, or an AMM-style unwind mechanism?
- Where does emergency power sit when oracle failure, bad debt, or market stress hits?
Curated comparison set
- Pooled-money baselines: aave and compound
- Market-structure rewrites: morpho and euler
- Failure-shape variants: silo-finance and llamma
- Liquidation-rights sidecar: b-protocol
Useful traversal path
- Start with the pooled-money baselines.
- Then read the market-structure rewrites.
- Then use the failure-shape variants to compare isolated listing policy, soft liquidation, and liquidation-right routing.