Cōnfīdentia (n.): Assurance, Confidence, Boldness
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This week, we’re joined by Port Finance, the borrow-lending platform and fixed income suite on Solana.
In stormy winter markets, where can one find a lighthouse for a safe return to harbor? For Port Finance, the answer lies in fixed and variable rate lending offerings.
What is Port Finance?
Port Finance is a borrow-lending and money market protocol on Solana providing a suite of fixed income products. These products include variable rate and fixed rate lending, as well as interest rate swaps.
The current variable rate product features variable interest rates based on supply and demand, cross collateral lending, and flash loans.
The fixed-rate lending product uses the model of zero-coupon bond. We allow lenders to lend at a fixed rate, and borrowers to take on fixed-rate, fixed-term loans!
Port x Pyth
Port uses Pyth prices to determine users’ account health and mark unhealthy positions for liquidations. On top of this, Port also integrates Pyth’s EMA prices to further ensure protocol safety.
Fixed-Rate Lending, Finally
Our current focus at the moment is on fixed-rate lending, as it is a largely untapped market within the DeFi space as compared to the TradFi space.
I believe crypto users are accustomed to variable rates, as yield could fluctuate from an insanely high APY to a 1 digit APY when the masses flock in. In a winter market setting, yield will probably not be lucrative at all, as everyone is looking for a safe haven to park their stable tokens. This is where fixed rate comes into play.
With fixed rate interest, businesses/DAOs that lend or borrow will have better visibility on their income or expenses. This is probably very important for start-ups–to eliminate as much uncertainty as possible in terms of earning yield and borrowing costs as well.
Now’s your chance! Readers can get involved by trying out our fixed rate offering.
You can join our Discord and share your thoughts and feedback on how you think fixed rates should be pushed forward. We are open to hearing more suggestions and thoughts on how we can better Port’s products!