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:

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

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.

The Tenor AMM solves this issue by offering the Morpho variable rate to lenders while their position is pending.

We plan on launching on testnet in June and on mainnet in July!