Fixed-Rate Borrowing in DeFi · Landscape Brief · June 2026

Ten ways to lock
a borrowing rate. One
isn’t live yet
.

Every other corner of DeFi lets the borrowing rate float. Here, ten teams are trying to nail it down for a fixed term — the niche beneath variable-rate giants like Aave and Morpho Blue. Strip away the mechanism names and they are ten bets on one hard problem: how to make a fixed rate liquid when every maturity is its own market. Ten mechanisms, one still pre-mainnet, the whole DeFi-native field worth a few hundred million and led by borrower-credit shop Wildcat. The honest caveat: the institutional RWA tier next door is ~50× bigger, and that is where the real money already sits.

The ten core protocols

  • Morpho Midnight · intent-based fixed-term credit markets Pre-launch
  • Term Finance · weekly sealed-bid rate auctions
  • TermMax · tokenized bonds + AMM range orders
  • Fira · tokenized fixed-maturity bonds — big on paper, ~$5M once you net it
  • Secured Finance · on-chain order book for zero-coupon bonds
  • Inverse Finance (FiRM) · DOLA Borrowing Rights (DBR)
  • Exactly Protocol · per-maturity fixed-rate pools
  • IPOR · interest-rate swaps / hedging overlay
  • Wildcat Finance · borrower-set custom credit markets
  • Liquity V2 · borrower-set rate on the BOLD stablecoin
Combined field size · loans + TVL, Jun 2026
~$300M

— and most of that is two names. Borrower-credit shop Wildcat (~$150M outstanding) and Liquity V2 (~$74M) are the bulk of the field. Fira looks like the leader on a ~$425M headline — until you net out the collateral it loops through itself and that number collapses to ~$5M of real on-chain value. The metric was doing the marketing. Notional once topped ~$843M and still wound down after the Nov 2025 Balancer hack; scale was never what kept anyone alive. And the institutional RWA tier next door is still ~50× bigger than all of this combined.

As of

21 June 2026

Sources

DefiLlama · protocol docs

Scope

Fixed-rate, fixed-term borrowing

Field

10 core + adjacents

Why the niche exists

Variable rates float.
Fixed rates let you plan.

Fixed-rate the interest cost is known at the moment you borrow, not re-priced block by block.|Fixed-term the loan has a defined maturity date.|Most DeFi lending (Aave, Morpho Blue) is the opposite — variable-rate, open-term pools where the rate moves with utilization.

Why borrowers want it

  • Cash-flow planning — a treasury can budget an exact interest expense.
  • Institutional mandates — many desks cannot hold open-ended floating-rate exposure.
  • Hedging — lock a cost ahead of expected rate volatility.
  • Structured products — fixed legs are the building block for leverage, looping and RWA financing.

Why it’s still a small slice

  • Liquidity fragmentation — every maturity is its own market, so depth is split many ways.
  • Rollover risk — someone has to refinance at maturity.
  • Capital-efficiency drag — matched terms are harder to keep fully utilized than an always-on pool.

The ten protocols ahead are really ten different bets on how to beat these three problems.

The shape of the field

Floating rates are fine until someone has to budget — which is the whole reason fixed income exists in the first place. On-chain that corner is still small, but it bites exactly where variable rates hurt most: institutional treasuries, RWA financing, and rate hedging. The demand is obvious; the on-chain liquidity to serve it is the part still missing.

One borrower, nine routes

Borrow 10 ETH for three months.
Nine ways to lock the rate.

Same goal — a predictable cost on a 3-month loan — routed through each protocol’s native mechanism.

ProtocolHow you’d lock the 3-month rate
Term FinanceBid in the relevant weekly sealed-bid auction; you pay the single market-clearing rate.
TermMaxMint/take FT via an AMM Range Order at the 3-month market.
FiraOpen a position in the 3-month market; the Bond Token you mint locks the rate, and you can sell the Coupon Token for upfront yield.
Secured FinancePlace a limit order in the 3-month order book; you mint a tokenized zero-coupon bond (“ZC ETH…”) at the matched rate.
Inverse (FiRM)Buy the required DBR at market price — that price is your locked rate.
Morpho MidnightSubmit an intent for a fixed-rate / fixed-term match once live
ExactlyLock the rate straight from the 3-month maturity pool (priced off its utilization).
IPORKeep the borrow on Aave and enter a 3-month rate swap to hedge the float.
WildcatSpin up a custom market with a 3-month term and whitelist the lenders.

The tell: notice how differently each one discovers the rate — an auction, a bond price, an order book, a token you hold, an intent, a pool’s utilization, a swap, or simply whatever the borrower decrees. That mechanism is the whole story, and it’s the spine of the matrix on the next page.

Side by side

The comparison matrix.

Protocol Core mechanism Fixed term Rate set by Collateral / risk Status & TVL Chains
Morpho Midnight Intent-based P2P matching in isolated, immutable markets Yes (fixed-maturity) Intent matching + curators Isolated, immutable markets Pre-mainnet — audited May–Jun 2026 EVM (planned)
Term Finance Recurring on-chain sealed-bid auctions Yes (weekly, up to ~1yr) Single clearing price Per-auction, overcollateralized Live · ~$13M Ethereum + BNB, Avalanche, Arbitrum, Base
TermMax Tokenized bonds (FT/XT/GT) + AMM “Range Orders” Yes (maturity dates) AMM curve pricing Isolated positions; 1-click leverage Live · ~$33–49M Ethereum + 7 more (Base, BNB, Arbitrum, Berachain…)
Fira Tokenized fixed-maturity bonds (BT / CT / FiraWrapped); rate by supply & demand Yes (maturity dates) Market supply/demand (not utilization) Overcollateralized; isolated per-market Live (2026) · ~$5M net TVL (large gross loan book, nets to ~$5M) Ethereum
Secured Finance On-chain order book (CLOB) for tokenized zero-coupon bonds; Itayose opening auction Yes (quarterly maturities) Order-book matching Overcollateralized; also USDFC stablecoin Live · ~$0.6M Filecoin, Ethereum, Arbitrum, Polygon zkEVM, Avalanche
Inverse (FiRM) DBR — tokenized borrowing rights for DOLA Flexible (DBR = ~1yr units) DBR market price Overcollateralized DOLA Live · ~$20M (not ~$60M) Ethereum
Exactly Fixed-rate pools + one shared variable pool Yes (maturity dates) Per-maturity utilization Variable + fixed pool interaction Live (post-2023 hack) · ~$3.8M Optimism, Base
IPOR Interest-rate swaps; now pivoting to Fusion vaults Yes (swap durations) AMM for interest rates Derivative overlay on Aave / Compound Live · IRS now legacy Ethereum, Arbitrum
Wildcat Borrower-led custom credit markets Yes (borrower-set) Set by borrower at creation Permissioned lenders; undercollateralized Live · ~$150M outstanding Ethereum
Liquity V2 Overcollateralized BOLD borrowing; borrower sets own rate Open term (rate locked until changed) The borrower (rate sets redemption order) Overcollateralized (ETH / LSTs) → BOLD Live (2024) · ~$74M Ethereum (widely forked)
Takeaway The field divides on one thing: how the rate is discovered — auction, bond price, order book, a token you hold, an intent, pool utilization, a swap, or simple borrower decree. Rank it by net TVL, the only honest cross-protocol ruler, and Wildcat (~$150M) leads with Liquity V2 (~$74M) behind it; everything else is under ~$75M. Fira shows a huge gross loan book that nets to ~$5M — the loan book is real, the on-chain float is not. Notional (~$843M) is gone after the Balancer hack, and the most-hyped name, Morpho Midnight, still isn’t live. (Sky’s Spark lends ~$4.7B — but at a rate governance can change, so it is not a fixed term.)
The intent-based bet
01 Morpho Midnight Pre-launch

Lenders and borrowers post intents.
The market matches them at a fixed rate.

Midnight is the fixed-rate, fixed-term half of Morpho V2 (the other half is Vaults V2). Instead of a shared pool, lenders and borrowers post intents — the rate and term they’ll accept — and the protocol matches them in isolated, immutable, permissionlessly-created markets. Rate and risk are externalized to curators rather than baked into a utilization curve.

It is designed to complement, not replace, Morpho Blue’s variable-rate pools, with institutional-grade fixed-rate lending as the explicit target. Non-custodial and EVM-native.

Why it matters

  • The most credible attempt to make fixed-rate scale via managed liquidity rather than fragmented per-maturity pools.
  • Backed by Morpho’s existing distribution and curator ecosystem.

Status check — read this

The whitepaper and codebase went public in late May 2026; a Cantina audit competition ran 29 May – 12 Jun 2026. As of this brief it is audited but not yet on mainnet — don’t assume it’s usable.

The auction bet
02 Term Finance

One sealed-bid auction a week sets
a single rate everyone pays.

Term runs recurring weekly on-chain sealed-bid auctions for terms up to ~1 year. Lenders submit the rate they’ll accept and borrowers the rate they’ll pay; the auction clears at a single market-clearing rate that all matched participants receive or pay — no spread, no slippage. Loans are crypto-collateralized.

The pitch is fairness and certainty: everyone in a given auction transacts at the same transparent price.

Correction vs. earlier drafts

Term is no longer Ethereum-only. It is now multi-chain — Ethereum is still ~72% of TVL, but it also runs on BNB Chain, Avalanche, Arbitrum and Base.

Status
Live with recurring auctions · ~$13M TVL.

The tokenized-bond model

Turn the loan into a tradable bond.

Strip the jargon and it is the oldest trick in fixed income: sell a dollar for ninety cents today, repay a dollar at maturity — a zero-coupon bond with a wallet address. The model’s pioneer, Notional, is now in the graveyard (page 12), which tells you most of what you need: this is the most crowded corner of the field and the one that has already buried its leader. Three live attempts remain — TermMax on an AMM, Fira on supply-and-demand markets, and Secured Finance on a real order book.

03

TermMax (ts.finance)

A fixed-rate marketplace with maturity dates, built on tokenized instruments — FT (Fixed-rate Token, a zero-coupon bond), XT, and GT (loan-position) — priced through a custom AMM using “Range Orders.” Isolated positions, one-click leverage/looping, passive yield vaults.

  • Correction: it migrated from an orderbook to an AMM — it is not “maker-taker order matching.” And it is live on ~8 chains (Ethereum is the bulk, plus Base, BNB Chain, Arbitrum, Berachain, X Layer, Hyperliquid, BSquared), not just Ethereum + Arbitrum.
EdgeThe most chains, and the slickest one-click leverage of the fixed-rate set.
04

Fira (fira.money) ~$5M net TVL

Fira makes fixed-rate, fixed-maturity credit a native on-chain primitive, with rates discovered by supply and demand rather than a utilization curve — producing real yield curves and defined maturities. Each position is split into composable tokens: a Bond Token (principal; trades at a discount, redeems 1:1 at maturity — a zero-coupon bond), a Coupon Token (the yield, sellable upfront), and FiraWrapped collateral. Markets are isolated, each with its own collateral, loan token and risk profile. Its pitch: “Lock rates. Sell yield. Exit anytime.

  • The scale story — read the metric carefully: live since early 2026 (a pre-launch from 8 Jan migrated users off Euler), Fira posts a large gross loan book, on Ethereum, with six audits (Sherlock, Spearbit/Cantina, Hexens, yAudit). But DefiLlama’s netted TVL — the figure that strips out recycled/looped collateral — reads only ~$5M. Ranked by net TVL, the only apples-to-apples measure across the field, Fira is one of the smallest live protocols here, not the largest.
EdgeReal supply/demand yield curves with composable bond + coupon tokens — and you can sell the coupon for cash today.
05

Secured Finance (secured.finance)

The one true on-chain central-limit order book in the set. Lenders and borrowers post limit orders for tokenized zero-coupon bonds at fixed maturities; a periodic Itayose opening auction discovers the first price, then continuous matching takes over. A filled order mints a transferable ERC-20 bond (e.g. “ZC ETH SEP2026”). It also issues the USDFC stablecoin on Filecoin and is pushing RWA integration.

  • Caveat: mechanism-rich but tiny — ~$0.6M TVL, the smallest live protocol here, spread across Filecoin (the bulk), Ethereum, Arbitrum, Polygon zkEVM and Avalanche.
EdgeThe closest thing to a TradFi bond order book on-chain — and the only one Filecoin-native.
Rights & pools

Price the right to borrow,
or the pool itself.

06

Inverse Finance — FiRM

Fixed-rate borrowing of the DOLA stablecoin via DBR (DOLA Borrowing Rights): 1 DBR = the right to borrow 1 DOLA for one year, depleting over time as the interest cost. Buy the DBR you need upfront and the price you pay is your locked annual rate. Duration is flexible/indefinite; overcollateralized. A yield-bearing sDOLA version also exists.

  • Correction: TVL is ~$20M (FiRM) / ~$26M (protocol), not “~$60M.” FiRM was the safety-first redesign after Inverse’s 2022 exploits.
EdgePay once, hold the right — rate certainty without a fixed end date.
07

Exactly Protocol

Borrow and lend at fixed rates across specific maturities. Exactly runs fixed-rate pools (one per maturity) bridged by a single shared variable-rate pool; each maturity’s rate is set by its own utilization.

  • Correction: this is not a “decentralized Interest Rate Swap” — its own docs note no AMM or IRS is needed. It is still live, having survived a ~$7.2M Aug-2023 exploit (re-audited, users compensated, resumed). Chains are Optimism + Base (Ethereum now dormant); ~$3.8M TVL.
EdgeThe only one here that has taken a real hit — and kept operating.
Overlay & borrower-led

Hedge the float, or write your own terms.

08

IPOR

Inter Protocol Over-block Rate. Rather than a standalone money market, IPOR’s original product was an interest-rate swap: a borrower already on a variable-rate platform (Aave, Compound) swaps their floating rate for a fixed one — predictability without moving collateral.

  • Correction: the acronym is “Over-block Rate” (per-block on-chain data, à la LIBOR/SOFR), not “Over-the-counter.” IPOR has largely pivoted from IRS to “Fusion,” institutional yield-vault infrastructure; the token is migrating IPOR→FUSN. The swap product is now legacy.
EdgeFix your rate without leaving Aave — if you can find swap liquidity.
09

Wildcat Finance

A borrower-led, undercollateralized, permissioned credit protocol. The borrower defines their own market — fixed rate, reserve ratio, withdrawal cycle, lender whitelist — and Wildcat provides the rails rather than underwriting the risk. V2 launched Feb 2026; counterparties include Wintermute, Amber and Keyrock.

  • Total customization for sophisticated borrowers; ~$150M credit outstanding. Closest in spirit to TradFi bilateral lending.
EdgeThe borrower sets the rate — pure bespoke, on-chain.
10

Liquity V2 (BOLD)

Immutable, overcollateralized borrowing of the BOLD stablecoin against ETH and liquid-staking tokens — where each borrower sets their own annual interest rate. The catch: your chosen rate sets your redemption priority (the lowest-rate loans are redeemed against first), so rate-setting doubles as a continuous, market-driven defense of the peg.

  • Live since late 2024; ~$74M TVL on Ethereum, and widely copied via its “friendly fork” program (Felix on HyperEVM, Nerite on Arbitrum, Quill on Scroll).
EdgeName your own rate — and wear the redemption risk that comes with it.
Two honourable mentions on rate-setting. Spark (Sky / ex-MakerDAO) lends USDS at a governance-administered “Transparent Rate” — stable in the short run but changeable by governance, so not a true fixed term — yet at ~$4.7B it is larger than this entire list combined.|Rheo (formerly Size Credit) runs a genuine order-book fixed-rate model on Base + Ethereum, but is now near-dormant (~$34k).
The institutional / RWA frontier · I

Tokenized T-bills: the
on-chain risk-free rate.

Every fixed borrowing rate is implicitly priced against a risk-free benchmark. On-chain, that benchmark now exists — a ~$15B tokenized US-Treasury market yielding a blended ~3.3%, and increasingly the collateral that backs on-chain credit.

The category — ~$15B, mid-2026

Circle USYC~$3.07B
BlackRock BUIDL~$2.37B
Franklin Templeton BENJI~$2.4B
Ondo USDY~$2.16B
Superstate USTB~$838M

Source: rwa.xyz, 21 Jun 2026 · ~82 products, blended ~3.3% 7-day APY. In 2026 Circle’s USYC overtook BlackRock’s BUIDL as the single largest.

The DeFi-native issuers

Ondo — OUSG (~$551M) + USDY (~$2.16B). Now building Ondo Chain and Ondo Global Markets (430+ tokenized stocks/ETFs; Franklin Templeton and MetaMask onboard) — its biggest 2026 thrust.

Superstate — USTB (~$838M, now Invesco-managed) + USCC crypto-carry (~$267M, now Bitwise). Coinbase Asset Management partnership.

OpenEden — TBILL (~$214M, reserves rated S&P AA+) + USDO stablecoin (~$33M). Backed by Ripple and Anchorage.

Why it’s here: these are not borrowing venues — they are the fixed-income floor the rest of the stack is priced against, and the collateral that increasingly backs on-chain fixed-rate credit.

The institutional / RWA frontier · II

Where fixed-rate meets
real balance sheets.

A

Maple Finance

The scale leader in on-chain institutional credit: RWA-focused, fixed-term, fixed-rate private credit through permissioned pools run by credit underwriters, plus the permissionless Syrup (syrupUSDC) yield token. ~$2.1B TVL across Ethereum and Solana; ~$12B cumulative loans at ~99% repayment (note the 2022 Orthogonal ~$36M default).

EdgeThe biggest real institutional loan book in DeFi.
B

Centrifuge

The flagship RWA-tranching name. Centrifuge V3 tokenizes funds and private credit as composable deRWA tokens across ~9 EVM chains (plus Solana and Stellar). Headline funds: JAAA — the Janus Henderson Anemoy AAA CLO fund (>$1B, seeded with $1B from Sky’s Grove) — and SPXA, the first licensed tokenized S&P 500 index fund. ~$1.63B TVL.

EdgeSenior/junior tranching of real institutional assets — the closest thing to TradFi structured credit on-chain.
C

Clearpool

Began as uncollateralized institutional borrower pools; now repositioning around tokenized RWA credit and its own Ozean RWA L2. ~$27M TVL, now mostly on Flare — small today, an early bet on the RWA-rollup thesis rather than a scaled lender.

EdgeA pivot in progress — watch the chain, not the current TVL.

The institutional / RWA read

For an institutional or RWA builder, this tier — not the DeFi-native primitives — is where the real balance sheets sit: permissioned credit, tokenized funds, and senior/junior tranching of real-world assets, with tokenized Treasuries increasingly posted as collateral.

Adjacent, related & retired

The neighbours — and the graveyard.

DeFi-native tranching (related but distinct)

These create fixed / prioritized yield via senior/junior tranching rather than direct fixed-rate borrowing: Strata, Knox. For RWA tranching at scale, see Centrifuge on the previous page.

Moved up a tier

Maple, Clearpool and the tokenized-Treasury issuers now sit in the institutional / RWA frontier (pages 10–11) — that is where the real balance sheets are.

Wound down / dormant

  • Notional Finance (fCash zero-coupon bonds) — the former category leader (~$843M, ~94% on Arbitrum), wound down after the November 2025 Balancer hack.
  • Yield Protocol (fyTokens) — wound down Dec 2023.
  • Element Finance → DELV — the whole effort wound down Mar 2025 (not just a rebrand).
  • 88mph — technically live, very low activity.
  • Goldfinch — pivoted to Goldfinch Prime, institutional RWA private credit.
  • TrueFi — uncollateralized-lending pioneer, now ~dormant (~$22K TVL); attempting an RWA reinvention (Trinity).

Removed from the v3 list

  • Pendle & yield-tokenization peers — fix yield, not borrowing.
  • Flashstake — yield-side and effectively defunct (~$38K TVL).
  • Contango — pivoted to variable-rate looping; no longer fixed-rate.
  • Royco — an “incentivized action market,” not a tranche protocol.
How to read the field

Ten protocols, sliced five ways.

01

How is the rate discovered?

  • Auction — Term (periodic, single fair price)
  • Bond price — TermMax (AMM) · Fira (supply/demand)
  • Order book — Secured Finance (CLOB + Itayose)
  • Intent match — Morpho Midnight (managed liquidity)
  • Token you hold — Inverse DBR · Pool utilization — Exactly
  • Swap overlay — IPOR · Borrower decree — Wildcat
02

Collateral model

  • Overcollateralized crypto — Term, TermMax, Fira, Secured Finance, Inverse, Exactly
  • Undercollateralized / permissioned — Wildcat, Maple
  • This split, more than mechanism, decides who can actually use a protocol.
03

Capital efficiency & leverage

  • TermMax offers one-click leverage / looping inside the fixed-rate frame.
  • The former leverage leader, Notional, is gone — its ~$843M evaporated when it wound down after the Balancer hack.
04

Flexibility vs. predictability

  • Most offer true fixed terms.
  • Inverse’s DBR trades a fixed end-date for rate certainty + duration flexibility.
  • IPOR adds predictability on top of an existing Aave borrow.
05

Maturity & scale

  • Oldest: Inverse (~2020). Newest: Morpho Midnight (2026, pre-launch) and Fira (early 2026, big gross loan book but only ~$5M net TVL).
  • By net TVL, Wildcat (~$150M) leads, Liquity V2 (~$74M) is next; most others — Fira included — are sub-$75M.
  • Battle-tested through an exploit: Exactly (and Inverse, twice). Notional, by contrast, did not survive the Balancer hack.
06

For an institutional / RWA lens

  • The real balance sheets sit one tier up: Maple (~$2.1B credit), Centrifuge (~$1.6B tranched funds) and a ~$15B tokenized-Treasury market — far bigger than the DeFi-native primitives.
  • Among the natives, permissioned Wildcat maps closest to real financing; Morpho Midnight is the one to watch if it ships with institutional curator liquidity.
Fixed-Rate Borrowing · DeFi

The DeFi-native fixed-rate field is
still a niche. The institutional money
has already moved next door.

The honest take: by net TVL the DeFi-native field is Wildcat (~$150M) and Liquity V2 (~$74M), and not much else — Fira’s headline nets to ~$5M, Notional is gone, Morpho Midnight still isn’t live. The mechanisms are inventive; the demand is not here yet. The real balance sheets already moved next door, into ~$15B of tokenized Treasuries and the Maple / Centrifuge credit tier that dwarfs this whole list. So the open question isn’t whether fixed-rate borrowing matters on-chain — in TradFi it is most of credit — but what finally brings the volume: a better mechanism, clearer regulation, or institutional distribution?

10

core fixed-rate borrowing protocols

~$300M

native field size · Wildcat leads (~$150M)

~$15B

tokenized Treasuries next door

1

still pre-mainnet · Morpho Midnight