Ethereum

When market demand is low, spreads in onchain money markets widen dramatically.

Aave’s USDC market today:
→ Lend Rate: 2.65%
→ Borrow Rate: 4.45%

That’s a 1.80% spread.

If we want to onboard the masses, we’ll need better quoting mechanisms.

Fixed Rate Infrastructure for the Onchain Economy. Soon™

You think fixed rate collateralized lending is scalable? You’d have to have a fixed supply of lending assets right & a borrow cap which is likely lower than what AAVE can provide. Almost like a vault. I’m intrigued. Building a market that is beneficial for lenders is nice but I wonder how scalable it is.

An interest rate AMM that matches lenders and borrowers directly (P2P) is a solution to the structural spreads of money markets. 

If you want to dive deeper, we've written a short blog about this idea:

An interest rate AMM that matches lenders and borrowers directly (P2P) is a solution to the structural spreads of money markets. 

If you want to dive deeper, we've written a short blog about this idea: https://blog.tenor.finance/onchain-interest-rate-amms

Demand is low, so suppliers should be taking their money elsewhere, but they are not. I don't understand the "quoting mechanism" that could be improved. Suggestions?

The spread is the same it doesn't change with rates lol