July 26, 2021, 5:07AM EDT
• 12 min read

An overview of fixed-rate products

Quick Take

  • Aave offers fixed-rate borrowing services, but the rate could still change under extreme market conditions
  • Fixed-term lending is slowly gaining traction in DeFi, although their demand is nowhere near established lending markets
  • Interest rate swap in DeFi is still in its infancy
  • Yield tranching is a technique that splits yields into tranches with various risk profiles, and most liquidity enters the riskiest tranche

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