Supply

Nexus Money Market allows users to supply assets to a shared liquidity pool, enabling them to earn interest while also using their deposits as collateral for borrowing. Once supplied, assets become part of the protocol’s pooled liquidity, making them available for borrowers while generating passive income for suppliers.

Interest on supplied assets accrues dynamically based on the utilization of the pool—when more assets are borrowed, interest rates rise, and when borrowing demand is lower, rates adjust accordingly. The protocol continuously recalculates these rates, ensuring a balance between supply and demand.

Risk parameters such as loan-to-value (LTV) ratios, collateral thresholds, and reserve factors are in place to safeguard the system. These parameters are influenced by on-chain data, including asset reserves, oracle price feeds, and liquidity conditions. As users supply, withdraw, borrow, or repay assets, the protocol automatically updates interest rates and borrowing conditions.

To represent supplied assets, Nexus issues zTokens, which act as interest-bearing tokens. Over time, zTokens increase in value as interest accrues, allowing users to withdraw their original deposit along with accumulated earnings when liquidity is available.

By participating in Nexus Money Market, users contribute to a decentralized financial ecosystem, unlocking yield opportunities while enhancing capital efficiency for borrowers.