Token and integrations
Integrations
Permissionless liquidations, oracle requirements and unwind venues.
Blotter touches three kinds of external systems: lending markets, where it liquidates; oracles, which price everything it does; and AMMs, where it sells. This page states what Blotter needs from each, and what a listing does and does not mean.
Permissionless liquidations
Morpho Blue-style markets expose a public liquidate function. Any address can call it on any liquidatable position. The caller repays debt in the loan asset and receives collateral with the market's liquidation bonus. There is no allowlist of liquidators and no registration.
What no integration required means
To the lending market, the pool is one more liquidator. The market does not need to deploy code, change a parameter, grant a role or sign anything. Its borrowers and lenders never interact with Blotter.
The reverse also holds. The lending market owes Blotter nothing. It can change or deprecate a market without notice, and Blotter has to follow or stop.
What a lending market must expose
- A permissionless liquidation function that lets the caller choose the amount repaid, so the pool can liquidate partially when its capacity is short.
- USDG as the loan asset. The pool repays in USDG and does not swap into other assets to liquidate.
- A Stock Token as collateral, transferred to the liquidator during the call.
- Readable positions and parameters: debt, collateral, LLTV, liquidation bonus and oracle address.
- A deterministic seizure formula based on the oracle price, as in Liquidation flow.
One condition sits outside the lending market. The Stock Token must allow the pool's address to receive and transfer it. If an issuer restricts which addresses may hold its tokens, the pool can act only where it is permitted. See issuer risk in Risks.
Oracle requirements
The pool values its inventory, checks eligibility and gates every action on the oracle. For a given Stock Token it uses the same feed as the lending market, so the price at which a loan is liquidatable is the price at which the pool books the collateral.
Heartbeat
Each feed has a heartbeat: the maximum expected interval between two updates while the market is open. The pool refuses to seize or unwind against an older price. A feed without a defined heartbeat cannot be used, because staleness could not be detected.
Market-hours awareness
An equity feed legitimately stops updating when the market closes. The pool has to tell three states apart.
| State | Feed behavior | Pool behavior |
|---|---|---|
| Market open, feed live | Updates within the heartbeat | Seizure and unwinding allowed |
| Market closed or ticker halted | No updates, by design | No seizure, no unwinding |
| Market open, feed silent | No updates, by failure | No seizure, no unwinding |
The pool behaves the same way in the last two states, but it must know which one it is in to resume correctly. That requires a reliable signal for session status: the regular session of 9:30 to 16:00 Eastern Time, exchange holidays, single-stock halts and market-wide circuit breakers. That signal is a dependency in its own right. If it is wrong, the pool stands aside when it should act, or acts when it should not. The design fails toward inaction.
AMM venues for unwinding
Inventory is sold for USDG on AMMs that list the Stock Token. A usable venue has:
- a pair between the Stock Token and USDG, or a short route to USDG;
- reserves and recent volume readable on-chain, because the tranche cap is a percentage of them;
- enough arbitrage during market hours for the price to return toward the oracle price between tranches.
The third point cannot be verified by a contract. It is an assumption about market structure, and the main reason unwinding is restricted to market hours. Where arbitrage is weak, successive tranches compound instead of resetting, and slippage exceeds the single-tranche formula in Warehouse and unwinding.
Blotter operates no AMM and provides no liquidity to one.
How a market can be listed
A lending market is listed when it is added to the pool's on-chain configuration, with a ticker and sector mapping for its collateral. The criteria are technical:
- The market meets the requirements above.
- Its oracle meets the heartbeat and session requirements.
- At least one usable AMM venue exists for the collateral.
- Inventory caps for the ticker and its sector have been set.
The lists of integrated markets and approved venues are published parameters. See Guardrails and parameters. A listing can be removed, for example if a market is deprecated or a feed changes. Removal stops new seizures on that market. Inventory already held continues to unwind under the normal rules.
No market is listed today. Blotter is pre-launch, and this page describes criteria, not existing integrations. Who decides on listings, and through what process, will be published with the contracts.
What a listing does not mean
A listing says nothing about the quality of a lending market or the soundness of its parameters. Blotter does not cover a listed market's bad debt. Nor is a listing a commitment of capacity: the pool absorbs what its free USDG and caps allow at that moment.