An overview of fixed-rate products

Fixed-rate and fixed-term financing is the main pillar in traditional finance. Debts such as mortgage and student loans have fixed-rate terms that minimize risks and provide certainty for lenders and borrowers, which has proven to be more desirable for most consumers in our financial system, including both retail and institutional participants. 

However, established lending markets in DeFi, such as Aave and Compound, offer variable interest rates for lenders and borrowers. The total outstanding debt on Aave and Compound exceeded $11.5 billion.