Today, the lending category has $28.5 billion in active loans, and almost all of that demand comes from variable-rate lending. This works fine in periods of stability; however, during stress events, as utilisation curves move, borrowing rates can spike. This rate surge forces some borrowers to exit or deleverage, making the overall credit market inefficient.
DeFi money markets, in fact, solved one problem traditional credit cannot offer by providing near-instant borrowing against collateral.
One problem remains: knowing the cost of debt before the loan is over.
That’s what many products are focusing on nowadays, moving toward fixed-rate and fixed-maturity credit products.
Join us today as we discuss this with Bitwise, KPK and Tenor Finance
