Solana-Based Crypto Lending Platform Jet Pivots to Fixed-Rate Term Lending

The Solana-based crypto lending level Jet is relaunching with fixed-rate loans, taking a leafage from accepted concern adjacent arsenic the bulk of its crypto rivals cling to adaptable complaint products.

Jet uses an bid publication plan wherever borrowers and lenders acceptable their ain terms, including the level of involvement rates and payback timelines.

“It's not immoderate artificially derived APY,” oregon annualized percent yield, said laminitis James Moreau. “It's wholly market-based.”

That’s however astir superior moves done the planetary economy. In crypto, things are different; lending protocols advertise ever-changing involvement rates that tin ascent sky-high and clang successful the aforesaid day. The upside is that you mightiness marque a batch of wealth by taking a batch of risk. The downside is that you astir apt won’t.

Even with little risk, Moreau said, Jet’s exemplary faces immoderate friction from large traders similar marketplace makers who person grown utilized to the flexibility of variable-rate products, wherever they tin often propulsion their wealth astatine immoderate clip (assuming the utilization complaint isn't excessively high, of course). With a fixed-rate merchandise their crypto is locked for the magnitude of the contract.

Jet’s ain show metrics – similar astir each Solana protocol – person fallen sharply from their highs successful precocious 2021, erstwhile the protocol had implicit $36 cardinal successful full worth locked, according to DeFLlama. These days it is nether $200,000.

Moreau admits it's improbable that fixed-rate lending products volition supply the spark for a unreserved of liquidity returning to Solana. But he’s hopeful that the merchandise tin entreaty to a niche of DAOs and different on-chain organizations who person large, dormant treasuries they tin enactment to use.

Traders of staked SOL tin besides find “a precise casual usage case” for acquiring casual wealth done Jet, Moreau said. He’s targeting those who are engaged successful maximal extractable worth (MEV) strategies and staked SOL.

“We fundamentally privation to spot arsenic overmuch of the lending wealth get borrowed arsenic possible, and truthful that's what I'm moving on,” Moreau said.