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Tenor
@tenor
Interest rate AMMs are the next evolution for onchain lending. They… → Improve matching efficiency vs money markets → Improve the lending and borrowing UX
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Tenor
@tenor
Variable rate money market are great, but… → Interest rate spreads between borrow and lend rates in these markets frequently range from 20% to 40% of the borrowing rate. → Borrow rates can spike when utilization increases above the kink, hindering the UX for borrowers.
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Tenor
@tenor
Concentrated liquidity interest rate AMMs are the solution. They enable… → P2P matching: Lending AMMs enable users to lend and borrow at specific interest rates for a set maturity date. This significantly cuts the spread of traditional money markets. → Better UX for borrowers: Users have the ability to borrow at fixed rates, preventing the need to unwind positions due to rapid changes in a market’s utilization.
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Tenor
@tenor
Learn more about Tenor’s interest rate AMM: https://blog.tenor.finance/onchain-interest-rate-amms
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