Fixed Rate (Lending)
A stable interest rate locked for a specific period in DeFi lending.
What is Fixed Rate (Lending)?
Fixed rates provide certainty for suppliers or borrowers, unaffected by pool utilization changes. Protocols like Notional Finance and Aave v3 offer fixed-rate lending, where a borrower might lock a 6% rate on DAI for six months. Fixed rates are less common but growing, with $2 billion in fixed-rate loans in 2025, per DefiLlama.
Fixed rates mitigate volatility risks, appealing to conservative users. In 2024, Notional’s fixed-rate pools saw 30% adoption growth, offering stability during market swings, though rates are often higher than variable ones to account for risk.
Related Terms
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The proof-of-stake consensus layer of Ethereum, coordinating validators since December 2020.
Market Order
An order to buy or sell an asset immediately at the best available current price.
ECDSA
A cryptographic algorithm used to create digital signatures for securing and verifying transactions in blockchain networks like Ethereum.
Grayscale
One of the world's largest digital asset investment platforms, offering regulated products for digital assets exposure including trusts and ETFs of Bitcoin and Ethereum.
DAO
A blockchain-based organization governed by smart contracts and member voting, eliminating centralized control.
Base Chain
Coinbase's Ethereum Layer 2 network built on the OP Stack, optimized for on-chain applications and developer accessibility.