# Create a Market

> Markdown export of the Gearbox Protocol documentation page for agents and retrieval systems.

Canonical page: https://docs.gearbox.finance/curators/create-a-market
Source file: content/curators/create-a-market.mdx
Section router: https://docs.gearbox.finance/curators/llms.txt
Section full export: https://docs.gearbox.finance/curators/llms-full.txt

### Prerequisites: The Price Feed Check

Before creating a market, the underlying asset (the token you want lenders to deposit) must be whitelisted in the **Price Feed Store** of the current chain.

**Check Availability:**

1. Go to the **Price Feed Store** section in the interface (click on the needed chain on [Instances page](https://permissionless.gearbox.foundation/instances))
2. Search for your target token (e.g., USDC, WETH).
3. **If it exists:** Proceed to the steps below.
4. **If it is missing:** You must add it first.

   Guide: [add-required-price-feeds](https://docs.gearbox.finance/curators/add-required-price-feeds)

### Configuration Walkthrough

[<https://youtu.be/4voQL8w4Emo>](<https://youtu.be/4voQL8w4Emo>)

## Market Parameters


1


#### Asset & Identity

* **Pool Version:** Select the latest verified version (currently **v3.1**).
* **Underlying Asset:** Select the token lenders will deposit (e.g., USDC).
* **Price Feed:** Select the Oracle feed used to value this asset.
* **Market Name:** A descriptive name for your dashboard (e.g., "USDC Core Market").


2


## Global Capacity (Total Debt Limit)

Max amount of underlying token that can be borrowed from entire pool.

* **Tip:** Setting this higher than your immediate target TVL will help to avoid frequent updates.
* *Note:* You will set more granular limits for specific strategies later.


3


#### Interest Rate Model (The Cost Engine)

The IRM determines the base borrowing rate based on pool utilization. Gearbox uses a **Two-Kink Model** to create a stable "Optimal Zone" for utilization.

**Key Parameters:**

* **U1 (Optimal Low):** The start of your target utilization range.
* **U2 (Optimal High):** The end of your target utilization range.
* **R\_base:** The interest rate at 0% utilization (The minimum cost of capital).
* **R\_slope1 / R\_slope2:** The rate increase as utilization rises to U1 and U2.
* **R\_slope3 (Penalty):** The sharp rate spike after U2. This forces borrowers to repay if liquidity becomes scarce.


**Strategy Tip:** A common approach is to target **80-85% utilization**. Set the borrow rate at this level to be roughly **60-70% of the expected yield** of the collateral strategies. This leaves a healthy spread for borrowers while attracting lenders.\


**Important: The Curator Fee is additive.**\
The Interest Fee (curator's & DAO's revenue) is charged **on top** of the rate paid to lenders.

*Example:* If the IRM rate is **5%** and your Interest Fee is **20%**, the borrower pays **6%** total (5% to LPs + 1% Fee). Ensure your IRM leaves room for this markup while remaining competitive.


* ***Reference:***
  * [Desmos IRM visualizer](https://www.desmos.com/calculator/d281eeb4a9)
  * [Mainnet ETH pool](https://app.gearbox.fi/pools/0xda0002859b2d05f66a753d8241fcde8623f26f4f/utilization)
  * [Mainnet USDC pool](https://app.gearbox.fi/pools/0xda00000035fef4082f78def6a8903bee419fbf8e)


4


## Rate Governance (The "Tumbler")

This determines how you manage **Collateral-Specific Rates** (add-on fees for specific collaterals of increased demand).

* **Type:** Select **Tumbler**. This allows the Risk Curator to manually update rates as needed.
* **Epoch Length:** The mandatory waiting period between rate updates.
  * *Example:* If set to **2 days**, you can only adjust rates once every 48 hours. This gives borrowers predictability.


5


#### Safety (Loss Policy)

This defines the logic for handling "Bad Debt" (when a position is insolvent even after liquidation).

* **Policy Type:** Select **Aliased**.
* **Function:** This protects Liquidity Providers during market de-pegs. If the market price of a collateral crashes (e.g., a flash crash), the system can switch to a "Fundamental Price" (e.g., Exchange Rate) to prevent selling collateral at a massive loss, effectively pausing liquidations until the market stabilizes.


### Next Steps

The Liquidity Pool is now deployed. However, users cannot borrow yet because there are no **Strategies** (Credit Managers) attached to it.