Term Finance, a decentralized finance (DeFi) protocol that offers short term, fixed interest rate loans, has gone live on the Ethereum mainnet.
The protocol is trying to bridge the gap between centralized crypto lenders and also offer users an alternative to variable rate borrowing, Dion Chu, CEO of the platform’s builder Term Labs, explained in an interview with CoinDesk.
Centralized finance has taken a hit, mainly due to the numerous prominent collapses last year. However, in contrast the DeFi sector, which is dominated by the likes of Aave and Compound, has remain largely unnerved.
Aave and Compound are sort of “DeFi banks,” Chu said. “They’re both kind of necessary primitives in DeFi. So Aave and Compound can always play the role of being a DeFi bank, and we hope to fill this role of short term, fixed rate liquidity,” he added.
Term Finance, which raised
