Fixed-rate lending protocol IRIS is scheduled to launch on SparkLend on November 10.
TechFlow reports that on November 9, according to The Defiant, fixed-rate lending protocol IRIS is scheduled to launch on November 10, offering fixed-rate loans based on SparkLend that allow borrowers to set their own loan terms.After borrowers submit collateral, loan amount, term, and an acceptable maximum interest rate, lenders will compete to offer fixed rates, covering the difference between the fixed quote and the underlying floating borrowing costs with margin.The report notes that if cumulative floating costs erode the margin to a specified threshold, the margin may be liquidated, terminating the fixed rate and leaving borrowers to directly assume the floating rate. Additionally, borrowers still face collateral liquidation risk, and early repayment will not reduce the interest owed for the full agreed term.
TechFlow reports that on November 9, according to The Defiant, fixed-rate lending protocol IRIS is scheduled to launch on November 10, offering fixed-rate loans based on SparkLend that allow borrowers to set their own loan terms.
After borrowers submit collateral, loan amount, term, and an acceptable maximum interest rate, lenders will compete to offer fixed rates, covering the difference between the fixed quote and the underlying floating borrowing costs with margin.
The report notes that if cumulative floating costs erode the margin to a specified threshold, the margin may be liquidated, terminating the fixed rate and leaving borrowers to directly assume the floating rate. Additionally, borrowers still face collateral liquidation risk, and early repayment will not reduce the interest owed for the full agreed term.
