Fixed rates in DeFi

Most of DeFi borrowing and lending protocols use variable rates (Aave, Compound, etc). However, fixed rate markets in TradFi account for 13 trillions USD and this sector is still in its infancy in DeFi. In the past years, we have witnessed the rise of several fixed rate protocols with the most notable being notional.finance (TVL of 1 billion USD at ATH). The goal of this talk is to present different designs of fixed rate protocols: - Zero coupon bonds: notional, yield - Yield stripping: Element, Sense - Contract for difference: Strips, YielSwap. Disclaimer: I am the CEO of contango.exchange, a DeFi derivative exchange building on top of fixed rate protocols.

SPEAKER

Kamel Aouane

EVENT

EthCC[5]

Date

7/20/2022

CATEGORY

Decentralised Finance

TYPE

Talk

LANGUAGE

EN

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