What is Interest Exchange?

Interest Exchange is a protocol that enables fixed-rate borrowing on top of existing DeFi lending protocols like Morpho Blue, Aave V3, Compound V3, Silo, and many more.

The Opportunity

Interest rate derivatives are the largest financial market in the world, with over $670 trillion in notional value outstanding (BIS, June 2025). Demand is accelerating, with ICE reporting record open interest of 42.3 million contracts across its interest rate derivatives markets in early 2026, a 45% year-over-year increase.

DeFi has $200B+ in active lending across protocols like Aave, Morpho, and Compound, yet there is almost no infrastructure for managing rate risk on-chain. Every DeFi loan is variable-rate by default, with no way to hedge. Interest Exchange brings the most fundamental tool in traditional finance, the interest rate swap, to DeFi.

The Problem

DeFi borrowing rates are variable, fluctuating constantly based on supply and demand. This makes it impossible to predict your borrowing costs, which is a major barrier for both individuals and institutions.

The Solution

Interest Exchange lets borrowers lock in a fixed interest rate by matching them with backers who absorb the variable rate risk in exchange for yield.

• Borrowers get predictable, fixed-rate loans
• Backers earn yield by taking on variable rate exposure

How It's Different

Unlike other fixed-rate solutions, Interest Exchange doesn't require borrowers to move their positions to a new protocol. Your collateral and debt stay on the underlying lending protocol, Interest Exchange simply manages the interest rate layer on top.