> For the complete documentation index, see [llms.txt](https://docs.chamberfi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.chamberfi.com/ecosystem/chamber-lending-market.md).

# Chamber Lending Market

Chamber's first-party lending market for tokenized real-world asset collateral

The Chamber Lending Market is a first-party lending market on Ethereum. Approved borrowers post tokenized real-world assets as collateral and borrow USDC against them.

It exists to serve strategies built on the Chamber stack. The first use is [Toros](/ecosystem/toros-finance.md) leveraged tokens on Ethereum that hold [Ondo Stocks](/concepts/supported-assets.md) collateral and borrow USDC to build their leveraged position, instead of routing that borrow through a third-party lending protocol. Their 1x counterparts simply hold the token and don't borrow.

> **Who can use it.** Borrowing is limited to approved addresses, so it isn't a market you can borrow from directly. Suppliers provide USDC and earn the variable rate paid by borrowers.

## Why it exists

Leveraged strategies need somewhere to borrow. For crypto collateral that is usually Aave or a Compound-style market. Tokenized equities are a harder problem: the major lending markets do not list them, so a leveraged tokenized-equity strategy has no venue to borrow against its own collateral.

Building the market in-house solves that, and keeps two things under Chamber's control:

* **Listing.** Which collateral assets are accepted, and on what terms.
* **Risk parameters.** Loan-to-value limits, interest, and liquidation behavior for assets whose risk profile is unlike crypto collateral.

## How it fits the Chamber stack

To a Chamber vault, a position in the lending market is an enabled asset like any other, with a dedicated asset guard and contract guard governing what the vault can do with it. That means the usual rules apply: the position is priced into [NAV](/concepts/nav-accounting.md), it counts toward the vault's [enabled asset](/concepts/supported-assets.md) set, and the manager cannot move funds anywhere the guards do not permit.

## How borrowing works

**Rates are variable and respond to utilization.** As borrowing demand rises relative to available USDC, the borrow rate rises. As liquidity increases or debt is repaid, it falls. Suppliers earn a variable rate funded by borrowers.

**Positions are subject to ongoing health checks.** Collateral is valued using market-set weights rather than at face value. If a position's weighted collateral value falls below the value of its debt, the position becomes unhealthy and can be liquidated. This protects suppliers, but it does not eliminate bad-debt risk.

**Borrowing access is controlled by a whitelist.** An address must be individually approved to borrow.

## Collateral

The market is built for tokenized real-world assets. The initial collateral set is Ondo Stocks tokens, the same tokenized equities described in [supported assets](/concepts/supported-assets.md). USDC is the borrowed asset.

Tokenized equities carry risks that crypto collateral does not, including regional access rules and dependence on an attestation-based price feed controlled by the issuer. Those risks pass through to any strategy borrowing against them. See [risks](/deposit/risks.md) and [tokenized equities on Ethereum](/manage/trading.md#tokenized-equities-on-ethereum).

## Security

The market was audited by **Sherlock** in a collaborative audit completed January 2026. The [full report](https://github.com/dhedge/DYTM-Audited/blob/main/docs/audits/Sherlock%20Collaborative%20Audit%20%5B17-01-2026%5D.pdf) is public.

Vault-side integration is covered by the standard Chamber [Guard System](/security/guard-system.md) and appears in the Chamber [audit history](/security/audits.md).

## See also

* [Toros Finance](/ecosystem/toros-finance.md): the strategies that use the market
* [Supported assets & protocols](/concepts/supported-assets.md): Ondo Stocks and the wider allowlist
* [Guard system](/security/guard-system.md): how vault interactions are constrained
* [Audits](/security/audits.md): full audit history