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Setting up a lending market involves deploying contracts, configuring the oracle, and setting risk parameters. The Issuers App handles most complexity—you’ll configure options through the interface while we deploy and wire up the contracts.

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Prerequisites

Before creating a lending market, ensure you have:

Tokenized Asset

A deployed security token (stock, commodity, or other asset) that will serve as collateral

Instance Access

Active Trusset instance with appropriate permissions

Wallet Configuration

Admin and issuer wallet addresses for role assignment

Initial Price

Current market price for the collateral asset

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Creating a Market

1

Navigate to Lending

In your Issuers App, go to Issuance → Lending Markets and click Add Market
2

Select Asset Type

Choose the tab matching your collateral (Gold, Stocks, etc.) and click Create Market
3

Configure Basic Settings

Enter:
  • Stock Token: Your tokenized asset (click on fetched asset)
  • Issuer Address: Comes automatically from connected address
  • Initial Price: Current asset price in USD (sync automatically from price feeds)
4

Set Risk Parameters

Configure collateralization settings:
  • Collateral Factor: 75% recommended for liquid assets
  • Liquidation Threshold: 85% provides 10% safety buffer
  • Liquidation Bonus: 5% incentivizes timely liquidations
5

Deploy

Click Create Market. The system deploys:
  • Lending market contract
  • Price oracle
  • Insurance fund
  • Connects to liquidation router

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Post-Deployment Configuration

After deployment, complete these configuration steps:

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1. Authorize Stock Token

Your stock tokens will automatically whitelist your lending contracts when deploying them. If you use an external token, the lending market needs permission to transfer your security tokens during collateral operations.
Navigate to your market’s Settings tab. If stock token authorization is pending, you’ll see an alert with the required action.Click View Configuration Status to see which authorizations are needed, then execute the provided transactions from your issuer wallet.

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2. Configure Oracle

The price oracle needs authorization and an initial price update.
Our backend can sign price updates, enabling gasless price synchronization. To authorize:
  1. Connect with the oracle owner wallet
  2. Click Authorize Signer in the market alert
  3. Sign the authorization message
This allows automatic price updates without manual transactions.
After signer authorization, click Sync Oracle to update the on-chain price. The system fetches the current price from pre-configured feeds and submits it to the oracle.Without a valid oracle price, users cannot borrow. If no custom price is configured, we will use our internal price feeds.
By default, markets use Alpha Vantage for stock prices. Configure a custom feed in Settings → Custom Price Feed:
        https://your-api.com/price?symbol={symbol}
The {symbol} placeholder is replaced with your asset’s ticker. Response must include one of: price, c, last, or regularMarketPrice.

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3. Configure Insurance Fund

The insurance fund protects against bad debt. Configuration happens automatically during deployment, but verify in Settings that the insurance fund address is set.

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4. Configure Liquidation

Liquidation is pre-configured to use Trusset’s shared liquidation router, which routes seized collateral to your configured trading venue. See Liquidation for custom liquidation contract integration.
The default setup:
  • Liquidated collateral → Liquidation Router → Trading Venue (Orderbook Custody Contract)
  • USDC proceeds → Liquidation Router → Lending Pool

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Configuration Status

The Configuration Status panel shows what’s complete and what needs attention:
StatusMeaning
✅ Market On-ChainContract deployed successfully
✅ Oracle ConfiguredPrice oracle has valid price
✅ Signer AuthorizedBackend can update prices
✅ Liquidation ConfiguredRouter authorized and ready
✅ Stock Token AuthorizedMarket can handle collateral
All items should be green before the market is production-ready.

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Risk Parameter Guidelines

For volatile or less liquid assets:
ParameterValue
Collateral Factor65%
Liquidation Threshold75%
Liquidation Bonus8%
Close Factor25%
Provides large safety margins but limits borrowing power.

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Supply Caps

Set limits to manage market exposure:
CapRecommendation
Max Total CollateralStart conservative (e.g., $1M), increase as market matures
Max User Collateral10-20% of total cap prevents concentration
Caps can be updated anytime through Settings without contract redeployment.

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Dutch Auction Settings

If using Dutch auction liquidations (recommended for larger markets):
SettingDescriptionRecommended
Enable Dutch AuctionToggle auction vs instant liquidationYes for markets > $100k
Auction DurationTime to reach minimum price1-24 hours
Start PremiumInitial price above oracle120-130%
Minimum PremiumFloor price95-100%
Auctions give liquidators time to participate and typically result in better prices than instant liquidations.

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Whitelabel Approval

Before your market appears in whitelabel applications, toggle Approved for Whitelabel in the market list. This controls visibility in the Borrow Module.

Management

Day-to-day operations and monitoring

Liquidation

Configure liquidation handling