One of the more Underrated Projects I have seen recently is @Ipor_io.
A Primitive that allows you to Speculate & Hedge on DeFi Interest Rates, Earn Stablecoin Yields, and Receive Retroactive Rewards.
Letβs take a Closer Look
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A Primitive that allows you to Speculate & Hedge on DeFi Interest Rates, Earn Stablecoin Yields, and Receive Retroactive Rewards.
Letβs take a Closer Look
π§΅
1/ Before we get started letβs talk briefly about Interest Rate Swaps. IR Swaps happen when two entities choose to swap the interest rates they have on their loans so that both parties benefit. This happens due to the differences between variable and fixed interest rates.
2/ Imagine if you took a variable interest rate loan that keeps going up while your friend went for the fixed interest rates instead.
3/ Instead of refinancing your variable interest rate, it might be cheaper to swap interest rates with your friend and offer them some incentive for doing so. As long as the offer you give them is lower than the cost to refinance, both you and your friend win.
4/ For the most part, only large banks have access to IR swaps, and they figure out swap rates by using LIBOR or SOFR, which are interest rate benchmarks that banks reference when lending. @Ipor_io is building out the DeFi equivalent of this with the Ipor Index.
5/ @ipor_io is a DeFi protocol that allows you to hedge or speculate on the interest rates of major DeFi lending platforms like @aaveaave and @compoundfinance.
6/ By building its own index, users can go long interest rates (Fixed to Floating) or short (Floating to Fixed) through major Stablecoin pairs. The index is also built to be a public good as well. Any protocol can build upon the index.
7/ The cool part of this is that if you are hedging your interest rates, you only need $1 of collateral for every $1000 you are trying to hedge your interest rates for (Still subject to liquidations).
8/ @Ipor_io also offers pretty compelling stablecoin yields for providing liquidity. Projected APR rates for stablecoins currently range from 8% to 17% with the yield coming from swaps, fees and stable farming with idle yield.
10/ Ipor has also confirmed that they will be offering retroactive rewards for users and community members. You can benefit from this by using the protocol, offering liquidity, or being helpful in their community server.
11/ TVL for IPOR has also been steadily growing time. As long as the protocol is secure and continues to grow. I expect this to continue growing over time due to the competitive stablecoin yield rates.
12/ Risks
- Even with audits, this is still a new protocol which needs to be battle tested so assess your risk tolerance.
- The yield you receive from being a Liquidity Provider isn't completely risk free so DYOR.
- Even with audits, this is still a new protocol which needs to be battle tested so assess your risk tolerance.
- The yield you receive from being a Liquidity Provider isn't completely risk free so DYOR.
13/ In conclusion, I think what @Ipor_io is doing is very interesting to the DeFi space as a whole, and I am excited to see the team continue to build in the future.
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This thread is for entertainment purposes only. Not Financial Advice.
This thread is for entertainment purposes only. Not Financial Advice.
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