DeFi fixed-rate lending should yield above variable.
The fixed-rate term lending structures being experimented with (e.g., in Morpho v2) should, in an efficient market, settle at a yield above the variable rate to compensate lenders for the borrower's protection against instant liquidation (i.e., the 'phone call' restructuring benefit). This presents a developing opportunity in DeFi term structure.
DeFi Fixed-Rate Lending Protocols
HIGH
Empire
Apr 13, 12:01