# Introducing: Tenor Passive Quoting

By [Tenor](https://blog.tenor.finance) · 2026-11-05

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Tenor now lets lenders passively quote lend and exit rates across fixed-rate lending markets on Morpho Midnight. Users can quote rates on an ongoing basis, with no need to post individual offers, set up a bot, or recycle capital manually. Unmatched capital automatically routes to a user-selected vault to start quoting again.

This enables lenders to create passive market-making strategies and auto-roll their lending positions.

![](https://storage.googleapis.com/papyrus_images/3f44e1ebb0bbb7126eb7e7e5d292fd571f743eec962a39cc4bd6c0694ea2b3b2.png)

Abstracting the complexity of quoting fixed-rate markets
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On Morpho Midnight, markets are isolated by default. A lender looking to quote across four markets for 1-, 2- and 3-month maturities must create 12 offers to lend and an additional 12 offers to exit. Passive quoting replaces this with one simple action:

![](https://storage.googleapis.com/papyrus_images/ecbaf5ab97d25e3571d1a346cff900e9e9201920d92e010337b251e16b371421.png)

With Tenor’s passive quoting product, lenders can:

1.  **Set a default yield source.** A variable-rate market or a managed vault where capital is allocated when unmatched.
    
2.  **Set lending rates.** A lend rate curve across multiple markets (e.g., lend at 5% for 30 days, 5.5% for 60 days, and 6% for 90 days). When a borrower borrows at a fixed rate, liquidity is pulled just-in-time from the lender’s default yield source to fund the offer at the quoted rate.
    
3.  **Set exit rates.** An exit rate curve across multiple markets (e.g., exit at 4% for 30 days, 4.5% for 60 days, and 5% for 90 days). If a borrower wants to repay early, they can match against the exit quote, and the lender’s position exits back to the default yield source. Funds in the default yield source are then automatically used to start requoting fixed-rate lend offers.
    

Passive quoting lets lenders build custom strategies, such as auto-rolling lend positions or market making. It’s powered by Tenor’s callbacks, which are built on Morpho Midnight’s callback primitive. Tenor’s callbacks fund fixed-rate requests just-in-time and exit back to the default yield source programmatically, under user-defined conditions (e.g., rates, durations, markets). All contracts are non-custodial and immutable.

A key building block to unlock short-dated credit markets
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Fixed-rate markets can be extremely powerful, but are inherently more complex. Programmatic quoting and capital recycling are key for these markets to mature and reach their full utility.

Passive quoting enables much more efficient requests for quotes, a key building block for short-term credit markets, such as lending against short-term payment receivables or offering revolving lines of credit. Lenders can programmatically quote across a broad range of markets, adapt rates based on collateral quality and duration, and recycle capital for increased efficiency.

Get started
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Passive quoting is live today at [app.tenor.finance](http://app.tenor.finance). Read the [docs](https://www.docs.tenor.finance/get-started/lend/passive-quoting) to learn more.

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*Originally published on [Tenor](https://blog.tenor.finance/introducing-tenor-passive-quoting)*