💹Market

Markets Structure

Markets Structure

This documentation explains the two different AMM pool configurations in TermMax, showing how markets can be structured with or without leverage capabilities. Each case with illustrated token examples (e.g., PT-sUSDe-27Dec2024 and USDC) demonstrates distinct setups for different token pairs and market functionalities.

Case 1: Integrated Leverage Market

Market Configuration

• Collateral: PT-sUSDe-27Dec2024

• Underlying/Borrowed Token: USDC

• Markets:

  • Borrow/lend Market: Required

  • Leverage Market: Enabled

Structure Flow

1. Liquidity Provider deposits USDC to the AMM Pool

2. Pool contains both XT and FT tokens

3. Both Leverage and Borrow/Lend markets share the same AMM pool

4. Markets operate with:

   • Leverage tokens in the Leverage Market: PT-sUSDe-27Dec2024

   • Collateral tokens in the Borrow/lend Market: PT-sUSDe-27Dec2024

   • Underlying tokens: USDC

Case 2: Borrow-Only Market

Market Configuration

• Collateral: LBTC

• Underlying/Borrowed Token: cbBTC

• Markets:

  • Borrow/lend Market: Required

  • Leverage Market: Disabled

Structure Flow

1. Liquidity Provider deposits cbBTC to the AMM Pool

2. Pool contains both XT and FT tokens

3. Only Borrow/Lend market uses the AMM pool

4. Markets operate with:

   • Collateral tokens: LBTC

   • Underlying tokens: cbBTC

Notes

• Both cases maintain AMM pool structure with XT/FT pairs

• Liquidity pool process remains consistent

• The tokens used for leverage and collateral are technically the same assets but are labeled differently in the Leverage Market ("Leverage tokens") versus the Borrow/Lend Market ("Collateral tokens")