Genesis Active Loans Soar to Record Levels in Third Quarter

DeFi lending is one of the sub-industry’s largest drivers, with protocols attracting billions of dollars in liquidity on the back of their huge returns offerings. The industry is already seeing some top players – including UMA Protocol, Yield Protocol, and Mainframe – venturing into fixed-rate lending.

As Purdy added, yield curves – which plot interest rates against maturity dates – that are overly steep mean that lenders will need higher returns to compensate for their capital. With more protocols possibly looking to offer fixed rates, the lending industry might see a slowdown if thrillseeking investors don’t get the high returns they are used to.

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