Liquidity Markets

K2 offers multiple market types to suit different risk profiles and strategies:

• Pooled (Main) Markets: Shared liquidity pools for high-efficiency assets (e.g., $XLM, $USDC, $pyUSD, $solvBTC). These provide the deepest liquidity, lowest slippage for swaps/borrows, and market-driven rates. Ideal for general use with cross-collateralization across supplied assets.

• Isolated Markets: Risk-isolated per asset pair. Collateral from one isolated market cannot support borrows in another. This limits contagion risk for newer or higher-volatility assets. Borrowing power is capped per market.

• Gated Markets: Restricted-access markets designed with deliberate barriers to entry. These are typically set up for specific institutions, approved partners, high-value or regulated assets, or custom compliance parameters.

  • Participation usually requires: Pre-approval via whitelisting (e.g., only designated wallet addresses or entities can interact)

  • Mandatory KYC/AML verification, and/or

  • Meeting other eligibility criteria (such as accredited investor status, jurisdictional restrictions, or asset-class rules).

Markets start with core Stellar assets and expand based on demand and security reviews.