The Decentralized Protocol For Fixed-Rate Lending & Interest-Rate Derivatives


This project proves a venue for decentralized & trustless interest rate swaps, and in doing so facilitates fixed-rate DeFi lending. In doing so, users are able to increase their exposure to DeFi yields through leveraged floating positions, while simultaneously insulating other users from the volatility inherent to current DeFi yields.

DefiHedge showcase

How it's made

This project utilizes an off-chain orderbook in order to broker a market-rate for a given swap, similar to 0x. Once an order has been accepted by a taker, the floating side has agree'd to back the given fixed rate. Both users funds are pooled and minted into cTokens on the Compound protocol. Once the lending agreement's term has completed, either user can initiate a return of funds, the fixed side receiving their fixed yield, with the floating side receiving the additional capital generated. We've hosted our on-chain initial proof of concept along with our landing page on IPFS using Pinata/Unstoppable to prevent the service from going offline. We also plan to integrate a libp2p based off-chain order sharing system similar to 0x. This did not end up making it into the hackathon but will be an integral part of our project.

Technologies used