Voltz Protocol users can borrow from Aave and Compound stablecoin and ETH pools at fixed rates in just one click, providing much-needed stability and protection from variable borrowing cost interest rate fluctuations.
LONDON, Aug. 30, 2022 /PRNewswire-PRWeb/ -- Voltz Protocol, DeFi's first synthetic interest rate swap (IRS) AMM, brings much-needed stability to DeFi with the launch of fixed interest rate borrowing markets for Aave-ETH, Aave-USDC, and Compound-USDT pools. For the first time in DeFi, this means traders with variable borrowing exposure on Aave and Compound can convert their debts into attractive fixed rate loans in just one click.
In the lead-up to the Ethereum Merge—the moment when Ethereum migrates from Proof of Work (PoW) to the more energy-efficient Proof of Stake (PoS)—ETH borrowing is expected to increase as traders look to cash in on higher yields available by staking ETH. However, as borrowing increases, variable borrowing costs will also increase, which could create unprofitable situations for traders.
By launching fixed-rate borrowing pools, Voltz is releasing a much-needed solution for borrowers concerned about the likely increasing rates that will precede the Merge and present problems in variable-rate borrow pools. The one-click borrowing capability offers traders stability by eliminating their exposure to the fluctuations that are inevitable with variable interest rates.
Simon Jones, CEO & Co-Founder of Voltz Labs, said, "These pools on Voltz Protocol finally give traders the ability to fix their borrowing costs on Aave and Compound. In doing so, traders can lock in predictable ETH or stablecoin borrowing rates - a timely product in the build up to The Merge where borrowing volatility is expected to increase. Launching these pools also showcases the power of Voltz Protocol. The generalisable and synthetic nature of the design means markets can be created on any asset with a variable rate - whether a yield market or borrowing market."
Aave Grants DAO said, "Aave Grants DAO is a community-led grants program to fund ideas submitted by the Aave protocol's community, with a focus on empowering a wider network of community developers. Voltz Protocol launching ETH and USDC borrow markets on Aave exemplifies the innovation we need to take DeFi to the next level. We are grateful to be a part of bringing these financial opportunities to the forefront and excited for the innovation being built throughout DeFi via Aave."
As an open-source, highly composable protocol, Voltz can serve as a catalyst for a new wave of DeFi products that previously were unattainable. In addition to fixed-rate borrowing, other potential applications include on-chain fixed-rate mortgages, loans, and savings accounts, as well as swaptions, IRS caps and floors, automated risk management systems, and DAO treasury management. The Voltz Labs team aims to provide developers with the guidance and resources they need to build on top of the Voltz Protocol with minimal friction.
For media inquiries, please contact Phil LeRoy at (310) 260-7901 or phil(at)melrosepr(dot)com.
About Voltz Protocol
Voltz Protocol is DeFi's first synthetic interest rate swap AMM and is up to 3,000x more capital efficient than alternative models. Interest rate swaps are a core pillar of TradFi, involving over $1,000tn notional exchanged each year, but have previously been accessible only to banks and other institutions. Voltz Protocol puts the power of rate trading into the hands of everyday traders and developers, ushering in a new era of composable, permissionless, and open-source financial products.
Media Contact
Phil LeRoy, Melrose PR, 310-260-7901, [email protected]
SOURCE Voltz Protocol
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