# Stack with Lending Markets

### **Overview**

Napier’s Principal Token (PT) represents a fixed-income position (Tokenized Yield) on a yield-bearing asset. By integrating PTs into lending markets such as Morpho or Euler, these fixed-rate positions can be reused as collateral, unlocking a new level of capital efficiency and utility within DeFi.

#### Lending Market and Oracle

To integrate PTs into lending markets, a price oracle is required. In Napier, the Napier AMM functions as this oracle, providing deterministic price data for PTs. For more details, see Deploy Oracles.

#### Lending Supply via Rehypothecation

The Napier AMM also features a built-in Rehypothecation mechanism, which allows idle LP funds—when not actively used for trading—to be supplied to any vault while remaining fully available for swaps.

As a result, Napier AMM liquidity can be supplied to lending vaults such as those on Morpho or Euler, earning lending yields on top of trading fees.

Through this Rehypothecation, Napier AMM liquidity forms a unified liquidity cycle that seamlessly integrates trading and lending.

***

### Integration Flow

1. [**Create a Napier Market**](broken://pages/Vu2pxoJIwVENzrvPOWpq)**:** Deploy a PT and YT market on Napier
2. [**Manage Napier Market**](/curate/napier-curation/manage-market.md):
   1. [**Deploy Napier Oracles**](/curate/napier-curation/manage-market/deploy-oracles.md)**:** Deploy the PT price oracle on Napier
   2. [**Set Rehypothecation**](/curate/napier-curation/manage-market/set-rehypothecation.md)**:** Deploy idle LP funds from Napier AMM into vaults
3. **Deploy Lending Markets:** Enable PTs to be used as collateral within lending protocols

***

### **Deploy Lending Markets**

To integrate PTs with Lending Market:

* [**Stack with Lending — Euler**](/curate/napier-curation/stack-with-lending-markets/stack-with-lending-euler.md)
* [**Stack with Lending — Morpho**](/curate/napier-curation/stack-with-lending-markets/stack-with-lending-morpho.md)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.napier.finance/curate/napier-curation/stack-with-lending-markets.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.