> For the complete documentation index, see [llms.txt](https://docs.tydro.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tydro.com/ii.-core-concepts/markets.md). # Markets How collateral is valued and loans are taken from Tydro markets A market defines what asset(s) can be used as collateral, what can be borrowed, how much, and the risk, interest rate model, oracle (price feed), and liquidation rules surrounding the position. ### Market structure Tydro v1 was built on Aave v3 supporting a pooled collateral market and segragated corrleated lending strategies such as ETH lending and USDe. Each market used Tydro v2 launches with further market isolation, where risk is priced per market and not shared across a larger lending pool. See [Isolated Markets](/ii.-core-concepts/markets/isolated-markets.md). Clusters and pools group correlated assets so they can share collateral and margin within set limits. See [Clusters and Pooled Markets](/ii.-core-concepts/markets/clusters-and-pooled-markets.md). ### What a market defines * Collateral asset and loan asset. * Risk parameters: LTV, liquidation threshold, and caps. See [Risk Parameters](/ii.-core-concepts/risk-paramaters.md). * An interest rate model, flat or kinked. See [Interest Rates](/ii.-core-concepts/interest-rates.md). * Oracle sources. See [Oracles](/vii.-developers/developer-overview/smart-contracts/oracles.md). ### Markets reference On-chain values are authoritative. Asset contract addresses are listed here; oracle feed and CAPO adapter addresses live on the Oracles page, and this table references the feeds by name. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.tydro.com/ii.-core-concepts/markets.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.