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Rhizome organizes lending into isolated markets. A market supports one loan asset and one collateral asset under a fixed oracle, interest rate model, and liquidation loan-to-value ratio (LLTV).

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Basic flow

  1. A lender supplies the market’s loan asset and receives supply shares.
  2. A borrower supplies the market’s collateral asset.
  3. The oracle values the collateral in units of the loan asset.
  4. The borrower can borrow up to the limit set by the collateral value and LLTV.
  5. The interest rate model updates the borrow rate based on market utilization. Interest increases borrower debt and lender assets over time.
  6. If debt grows too large relative to collateral value, the position becomes liquidatable. A liquidator repays debt and receives collateral with a protocol-defined incentive.
The market holds accounting in the Morpho singleton contract. A market is not a separate deployed pool contract.

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Isolation

Positions and accounting are scoped to a market ID. Liquidity supplied to one market is not available to another market, even when both use the same loan asset. Market isolation limits cross-market accounting exposure, but it does not remove shared dependencies. Markets may share the same core contract, interest rate model, tokens, oracle feeds, RPC infrastructure, or liquidation venues.

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What differs on Rootstock

The lending and liquidation accounting follows the pinned Morpho Blue implementation. Rhizome differs in deployment environment and configuration:
  • transactions settle on Rootstock;
  • supported tokens are Rootstock token contracts;
  • initial markets use Rhizome-selected parameters;
  • market oracles are wrapped by Rhizome’s StaleGuardedOracle;
  • offchain data is indexed from Rootstock events.