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™

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?

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:

Morpho on top of Aave was a good setup: some people got p2p rates, rest got the Aave rate. An amm, if I understand your proposal correctly, is worse: some people get p2p rate, rest sit in amm waiting to be matched earning zero.

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