Money Market
Extended Money Market documentation for USDC borrowing, collateral utilisation, variable interest rates, XVS treatment and the protocol lending model.
Overview
Extended’s native money market supports multi-asset collateral margin. The current implementation focuses on borrowing USDC against eligible collateral for use inside the trading platform rather than general-purpose external borrowing.
Interest Rate Model
Borrowing rates depend on both overall Vault utilisation and utilisation associated with each collateral asset. The effective rate is driven by the higher of the global and asset-specific rates, so different collateral types can produce different borrowing costs.
How Interest Applies
When a negative USDC balance is offset by qualifying non-stable collateral, the uncovered amount can be treated as USDC borrowing and accrue interest. XVS and certain covered unrealised-PnL situations can be treated differently under the protocol rules.
Vault Relationship
The Community Vault acts as the primary lender in the current money-market design. Interest paid by borrowers contributes to Vault economics and links lending utilisation directly to depositor yield.