Fixed lending and borrow rate

99% of DeFi offer variable lending and borrow rates.
This IMO is highly annoying since the rates changes so much and so quick that it is impossible to plan ahead where to lend money to get the best interest. To that we add that every transaction to move around money cost gas fees and even making an automatic allocator doesn’t make much sense.

I’ve seen in an old roadmap that there was aplan to make fixed rates. Any more info on that? It would be a big and nice change IMO and I’d put much more liquidity into it.
Also it “seems” pretty straightforward to me. Something like the rates are calculates as now but every week/month (or whatever number of blocks that means) they are locked for a full week/month. In this week/month the data are averaged to calculate the next rate, so that even ahead of the date when the rates change we can have an estimate of the next rate which gets more precise the more we are close to the switch date.

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Won’t work well that way with supply and demand…
(See Cake etc.)

Care to explain why not?

I can try…

Maybe you have followed the events when cake was added to venus:
All cake was borrowed within a few hours. Why? Because when you borrowed cake at venus you would pay 10% to 20% interest and when depositing cake into the native auto compounding vault at cake you would get 90 something %.

Or have a closer look when there is a new launch at Binance launchpad and see what happens with bnb… bnb interest is rising nearly double digits…

So from a lenders perspective it is not desireable to have a fixed rate.
And from a borrowers perspective it would be a nice thing to have (most of the times) but probably not always

I wrote fixed, but for a limited amount of time like one week/month. With CAKE example the “lucky” initial borrowers would get good rates for one week, but second week the rates should skyrocket because of the high request, eventually reaching an equilibrium.
And for BNB do you think that one week of lending at 50% makes any difference in one year? (And BTW now there is a launchpad and the lending rate of BNB is 5% only) As BNB lender I’d prefer to know that this month I’ll get a specific rate, so that I can pick the best place to lend my money.

I am sorry I got you wrong. My unterstandment of fixed was “fixed forever” like on those apps where you get 12% on stablecoins…

That sounds like a good idea to me…

Perhaps there is a way to give people a choice…
Either borrow or supply at a fixed rate or at the current system

Fixed rate lending usually charges more interest anyways but some people rather pay more to be on a fixed interest than be on a viable interest rate. There was a report on this by aave