For Borrowers

You have a variable-rate loan on a DeFi protocol like Morpho, Aave, or Silo. Your rate changes every block, making it impossible to predict your total borrowing cost. Interest Exchange lets you lock in a fixed rate.

How It Works

1. Request a quote — Submit a request-for-quote (RFQ) specifying your lending protocol, market, and position size. Backers compete to offer you the best fixed rate.
2. Accept a quote — Review the quotes you receive and accept the one with the best rate and terms.
3. Create a Position Manager — A dedicated Position Manager contract is deployed for you. This contract will hold your lending position and manage the fixed rate agreement.
4. Migrate your position — Transfer your debt and collateral from your existing wallet to the Position Manager. The PM interacts with the underlying protocol on your behalf via delegatecall, so your lending position continues to function normally.
5. You're covered — You now pay the fixed rate regardless of what happens to the variable rate. Settlement happens automatically, and any spread is reconciled between you and the backer's reserve pool.

Your collateral and debt live inside the Position Manager, which acts as your proxy on the underlying protocol. You retain full control and can interact with the protocol through the PM's forwarding mechanism.

When Fixed Rates Make Sense

• Large positions — The bigger your loan, the more rate volatility costs you
• Long duration — More time means more exposure to rate swings
• Rising rate environment — Lock in before rates climb higher
• Budgeting — You need to know exactly what your borrowing costs will be
• Higher leverage — Predictable borrow costs let you run higher leverage with confidence, as eliminating rate spikes reduces drawdowns on your position