Our mission is to develop the essential missing component in DeFi: a fixed income protocol. In traditional financial markets, Money Markets, Foreign Exchange Markets, and Fixed Income Markets collectively constitute the entire debt financial market. However, in DeFi, only Money Markets and Foreign Exchange Markets are currently functioning, as fixed income represents the most complex financial instrument. The intricacies of the term structure of interest rates make it unsuitable for automated market makers and peer-to-pool mechanisms, which are widely used in existing DeFi protocols. By addressing this challenge, we aim to complete the DeFi ecosystem and unlock new opportunities in the space.
Fixed income serves as a crucial foundation in traditional financial markets and should hold an equally important role in DeFi. The absence of fixed-income markets in DeFi hinders the accurate pricing of financial products that extend beyond the present day. By establishing fixed-income markets within the DeFi ecosystem, we can facilitate efficient borrowing and lending activities, develop forward and term futures markets, and enable seamless trading and hedging of real-world assets. Currently, real-world assets are limited to serving as collateral. If we do not develop fixed-income markets, DeFi's progress may stagnate, remaining at the same level it has been since 2020.
Our goal is to establish interest rate benchmarks for major stablecoins (USDC, USDT, and DAI), as well as ETH and wBTC. We aspire to become the go-to destination for people seeking to trade, hedge, or price interest rate products within the DeFi ecosystem.