Protocol overview

OpenAsset Market is a factory-deployed, isolated-market lending protocol. Each market is its own contract instance with independent liquidity, collateral asset, risk parameters, and adapter stack.

Problem

Legacy money markets approve a small set of blue-chip collaterals, fix terms via governance, and leave the long tail of on-chain value without lending utility — gaming tokens, niche NFTs, community assets, and increasingly tokenized equities and RWAs.

Solution

Separate a stable, narrowly scoped lending engine from a pluggable adapter layer:

1. Market Factory — permissionless deployment + validation matrix
2. LendingMarket (engine) — liquidity accounting, loan state machine, circuit breaker, defensive invariants
3. Adapter Registry — hybrid trust metadata (Verified / unverified / deprecated)
4. Five adapter types — Asset, Oracle, Compliance (optional), Liquidation, Position

New asset classes do not require modifying or re-auditing the contracts that hold everyone’s collateral. They require a new adapter.

Lifecycle in one page

LP creates market
  → Factory validates config + adapter compatibility
  → Deploys isolated LendingMarket
  → Wires adapters, seeds liquidity

Borrower requests loan
  → Compliance check (if configured)
  → Oracle price (must be trusted)
  → Asset adapter escrows collateral (balance verified)
  → Position adapter mints position
  → Stablecoin proceeds transferred

Repay or default
  → Sync liquidation (DEX / NFT auction) OR
  → Async path (issuer redemption: CURE → SETTLING → LIQUIDATED)
  → Surplus returned to position holder (gradual liquidation shape)

What the engine never does

• Encode ERC20 vs NFT vs RWA branches
• Trust adapter outputs without verification
• Continuously poll real-world eligibility mid-loan
• Underwrite which assets “deserve” markets
• Share risk across markets (no shared pool contagion)

Related

• Design philosophy
• Core contracts
• Adapter system
• Loan lifecycle