Secured Finance
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Secured Finance

Interest Rate Markets in DeFi

AMM to Orderbook

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Spot AMM Pool

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How about the Interest rate market in DeFi?

Interest Rates AMM Pool

Composability

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Scalability

The difficulty of on-chain OTC trading

Our Platform

Photo by Secured Finance
Photo from Secured Finance
  1. Standardizing — We set specific maturity dates quarterly in March, June, September, and December, following the standard of the traditional listed future market. We also defined our rates product as zero-coupon bond trading. Instead of receiving the coupon, you can buy the bond at a discounted price depending on the rates and maturities. You can benefit from less transaction cost and interest rate compounding effect.
  2. Novation — We decided to make our platform based on the orderbook system, which is OTC, peer-to-peer trading. However, you must consider the credit risk when you face counterparty A. In addition to the credit risk, you will be troubled when you want to unwind your transactions as you need to go and ask counterparty A. To remove these concerns, we have brought some wisdom from traditional finance and designed our smart contract as a clearing house that face every counterparty for peer-to-peer transactions. This separates the credit risk between clients and makes the unwinding straightforward. The lender’s funds will be secured by the over-collateralized asset from borrowers managed by the smartcontract.

Conclusion

About Secured Finance

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Secured Finance AG is a Swiss company that develops Fixed-rate loans to bring derivative structuring capatility for digital assets.

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Kenji Mitsusada

Head of Markets @ Secured Finance. 18 years of interest rate derivatives trading experience. Former Co-Head of G10 FX Forwards and STIR Trader at Goldman Sachs