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, route bad-debt cleanup, and decide how seized collateral gets turned back into the debt asset.
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?
Good comparison set
- Canonical pooled-money baselines: aave and compound
- Vault-and-market-structure rewrites: morpho and euler
- Isolated-credit and liquidation-shape variants: silo-finance, llamma, and b-protocol
- Liquidation-rights and orderflow sidecars that can quietly become part of the control plane: api3-oev and express-relay
Useful traversal path
- Start with aave and compound for the plain pooled-market baseline.
- Then read morpho and euler for the cleaner market-structure split.
- Then compare silo-finance, llamma, and b-protocol to see how isolated listing policy, soft liquidation, and liquidation-right routing change who really controls failure.