Lending Market

For the Canto Lending Market (CLM), governance is controlled by Canto stakers. Canto stakers have broad interests in the growth of the ecosystem and fostering the best environment for both developers and DeFi users. As such, they have no incentive to extract rent at the application layer. CLM will allow LP tokens from Canto’s native decentralized exchange to be used as collateral. This collateral will be deposited in a lending market as supply but users will not be allowed to borrow LP tokens.
CLM is an adaptation of Compound V2. It operates with an AMM that allows users to carry out borrowing and lending transactions using the underlying liquidity pool. This stands in contrast to the alternative of forcing peer-to-peer transactions. Using underlying liquidity in this manner reduces wait times and makes the system self-sustaining.
As long as liquidity mining incentives are provided to Canto stakers, CLM will always be available.