Introducing Earth: DeFi’s Native Interest Rate Swap Protocol
World’s first DeFi primitive splitting native market-making yields into fixed-income products boosting liquidity & capital efficiency for everyone.
In the vast landscape of DeFi, where innovation is constant, a glaring void has persisted — the absence of fixed-yield returns. Unlike Traditional Finance (TradFi), which boasts a plethora of fixed-income products, DeFi has been grappling with the challenge of offering stable returns. Automated Market Makers (AMMs), Staking Pools, and collateralized debt vaults dominate the DeFi scene, all geared towards decentralization but lacking the allure of fixed-yield products.
The Fixed Yield Dilemma — A Grand Opportunity
The gravity of this problem lies in its impact on the broader market. With no avenue for conservative investors to secure fixed returns, larger institutions and risk-averse individuals remain hesitant to embrace the DeFi space. The absence of fixed-yield products acts as a deterrent, hindering the democratization of access to structured financial products for investors with varying risk appetites.
Enter Earth — a permissionless interest rate swap protocol poised to reshape the DeFi landscape. Earth recognizes the need for fixed-yield returns and aims to bridge the gap, unlocking a massive opportunity to revolutionize how risk is shared in DeFi pools.
Pioneering a Paradigm Shift in DeFi
Earth’s vision is clear and ambitious — to democratize access to structured financial products for all, transcending the boundaries of crypto natives. In the DeFi world where currently investors of all risk profiles compete with each other playing a zero-sum game, Earth emerges as the catalyst for turning this dynamic into a positive-sum game. By creating a permissionless interest rate swap protocol, Earth enables conservative investors seeking stable yields to collaborate seamlessly with seasoned market-makers hungry for enhanced returns.
The brilliance of Earth’s approach lies in its commitment to inclusivity. The protocol addresses the dearth of fixed-yield returns in DeFi, making it an attractive haven for institutional investors and individuals with a risk-averse mindset. Earth’s innovative solution unlocks the doors to DeFi for a broader audience, creating a more robust and sustainable ecosystem.
Yield Tranching for Interest Rate Swap
At the heart of Earth’s transformative vision is its tranching module — a groundbreaking solution that splits yield-bearing assets into different tranches, each catering to distinct risk levels. This ingenious approach creates a win-win scenario for both conservative and risk-on investors.
The fixed tranches offer stable yields to risk-averse investors, ensuring consistent returns by channeling the underlying asset’s yield first. Meanwhile, the variable tranches cater to the risk-on investors seeking enhanced, leveraged yields. The leftover yield, after satisfying the fixed tranches, flows into the variable tranches, where additional leverage is applied to amplify returns.
Earth’s tranching system transforms the dynamics of risk-sharing in DeFi, breaking away from the limitations imposed by the absence of fixed-yield products. This innovative solution not only attracts a wider range of investors but also fosters a collaborative environment where risk-on and risk-off players coexist harmoniously.
Conclusion
Earth’s permissionless interest rate swap, coupled with its tranching module, represents a significant leap forward in the evolution of DeFi. By addressing the critical issue of fixed-yield returns, Earth is not just building a protocol; it’s sculpting a more inclusive and sustainable future for decentralized finance. As we begin our journey join us in the movement and reshape the future of DeFi together.
Join our Discord to meet the disruptors like you who are changing the DeFi world as we know it.
Website: https://earthprotocol.xyz/
Docs: https://docs.earthprotocol.xyz/
Twitter: https://twitter.com/EarthDeFi/
Discord: https://discord.gg/PbXud77YPd/
Zealy: https://zealy.io/c/earthprotocol/
