Lending Market
1) Overview
RealtyX is launching an isolated lending market built on Morpho, an open, modular DeFi lending stack. Users can supply liquidity (USDC on Base, pUSD on Plume) and borrow against RST collateral with clear risk parameters and no lock-ups (withdrawals depend on available liquidity). Morpho markets define the loan asset, collateral asset, oracle, interest rate model (IRM), and LLTV at market creation.
Entry point: RealtyX Utility Vault
Networks: Base, Plume
Note
This page documents RealtyX’s market configuration and operating policies; underlying rate/health mechanics follow Morpho’s protocol design.
2) Supported Networks & Assets
Networks
Base
Plume
Liquidity assets (to supply/withdraw)
USDC (Base)
pUSD (Plume)
Collateral assets (to borrow against)
RST001 & RST003 (Base)
RST002 (Plume)
aRST002 (Plume)
3) Key Concepts (Morpho-aligned)
Market: A minimal, isolated pair comprised of one loan asset and one collateral asset, with fixed parameters (oracle, IRM, LLTV) chosen at market creation. Isolation limits contagion across markets.
IRM (Interest Rate Model): Morpho is IRM-agnostic; the borrow APR in each market is produced by the chosen IRM. The DAO-approved default is AdaptiveCurveIRM. (docs.morpho.org)
LLTV (Liquidation LTV): A position becomes liquidatable when debt value exceeds the LLTV × collateral value; RealtyX markets set LLTV = 62.5%. (docs.morpho.org)
Open-source & governance: Morpho’s code and SDKs are open and hosted under morpho-org; the association hosts docs/frontends and IP for open-source codebases. (GitHub)
4) Rates & Utilization
Target & dynamics
Target rate: 4% APR at 90% utilization (market start state).
Instant reactions:
0% → 90% utilization: rate ×4
90% → 0% utilization: rate ÷4
90% → 100% utilization: rate ×4
100% → 90% utilization: rate ÷4
Time drift (if utilization flat):
at 0% util, rate halves ~every 5 days
at 100% util, rate doubles ~every 5 days
at 90% util, rate stays near target
These dynamics come from the AdaptiveCurveIRM tutorial (“Set the Rate at Target”) and keep borrowing costs responsive while nudging the market toward the 90% target. (docs.morpho.org)
Tip
Supply APY tracks borrow demand via utilization. When utilization is high, borrow rates (and thus supply yields) rise; when utilization is low, rates ease. Exact math is IRM-specific. (docs.morpho.org)
5) Collateralization & Liquidation
LLTV: 62.5% (RealtyX markets).
Trigger: A position is flagged when (Debt incl. interest) > (Collateral value × LLTV).
Execution windows (RealtyX policy): Mon & Thu, 09:00–10:00 UTC. Borrowers can repay or add collateral before the window to avoid liquidation. After liquidation, any surplus collateral can be reclaimed by the borrower.
Morpho provides a permissionless liquidation mechanism; community keepers/bots can execute liquidations when positions breach LLTV.
6) Liquidity, Withdrawals & Redemption
No lock-up: you can withdraw supplied liquidity anytime, subject to available pool liquidity (very high utilization can delay instant exits).
Borrowers: may repay anytime; once the debt is cleared, collateral becomes withdrawable.
7) RealtyX-Specific Benefits
Carry your rent: RST collateral continues to accrue rental yield while pledged.
“Effectively interest-free” window: If borrow APR < rental yield, net carry can offset borrowing costs.
Exception: aRST (non-KYC wrapper) does not earn rental income.
8) Incentives
RealtyX will launch a Merkl-powered campaign to reward suppliers/borrowers (e.g., Stablecoin, RX, Plume tokens). Merkl lets protocols configure targeted, non-custodial rewards and distribute them programmatically across chains. Details and schedule will be announced separately.
9) How to Use
Connect your wallet on Base/Plume.
Supply USDC (Base) or pUSD (Plume) to start earning variable yield.
Deposit collateral (RST001/003 on Base; RST002 on Plume; aRST002 on Plume).
Borrow up to your max capacity (stay well below LLTV = 62.5%).
Manage health: monitor utilization and price; repay or add collateral as needed, especially before Mon/Thu liquidation windows (09:00–10:00 UTC).
10) Risk Notes
Valuation model risk: RST collateral represents tokenized real estate; there is no continuously discovered on-chain market price. After on-chain issuance, RealtyX applies comparable-sales/listing-based pricing with periodic adjustments. This dampens intraday volatility, but scheduled adjustments can still compress your headroom relative to LLTV.
Utilization risk: Near-100% utilization can make withdrawals slower and rates higher.
Smart-contract risk: The Morpho and RealtyX Lending contracts are open-source. Even with testing and audits, bugs, economic attacks, or integration issues may occur. In extreme cases, users could face partial or total loss of funds—participate prudently.
11) Parameters (summary)
Networks
Base, Plume
Supply assets
USDC (Base), pUSD (Plume)
Collateral
RST001, RST003 (Base); RST002 (Plume); aRST002 (Plume)
LLTV
62.5%
IRM target
4% APR @ 90% utilization
Liquidation windows
Mon & Thu 09:00–10:00 UTC
Lock-up
None (withdrawals subject to available liquidity)
12) References
Morpho docs: IRM & Interest Rates; Liquidation; SDKs & Get Started. (docs.morpho.org)
Morpho blog: LLTV, oracle, IRM at market creation. (morpho.org)
Code & governance: morpho-org GitHub, organization. (GitHub)
13) Legal
This documentation is for informational purposes only and does not constitute financial, legal, or tax advice. DeFi carries risk of loss. Use at your own discretion.
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