At present, the form of the DeFi lending market is relatively simple, and the major lending agreements are basically "variable interest rates". In contrast, the traditional lending market mainly focuses on "fixed interest rate" loans, and fixed interest rates are more popular with traditional users and have a larger scale. Odaily has previously reported on several emerging fixed-rate agreements in the DeFi market. This article will introduce a new member: Qoda.

Qoda is a decentralized fixed-rate agreement based on Moonbeam, which allows users to mortgage and borrow encrypted assets at a fixed rate within a fixed period, and the terms of service can be set by users themselves. Its implementation is similar to a futures exchange, except that the number quoted is the APR (interest rate) of the loan, rather than the token price.

"Our long-term mission is to make the crypto interest rate market as popular and mature as today's crypto currency market by building a complete fixed-income solution for the DeFi world." Qoda believes that fixed interest rates mean less volatility and lenders You can get the desired stable income, and the borrower's borrowing cost is also predictable.

Specifically, users can quote in the Qoda system, post orders on the platform, and set whether they are borrowers or lenders, loan size, maturity date, and the APR (interest rate) they want. All of this can be done under a trustless chain through encrypted digital signatures, so that users do not need to pay any Gas when publishing quotations. "In theory, quotations can be generated completely outside the chain through the browser or the local machine of the quotation. This mechanism is to save Gas for users-only a minimum transaction execution needs to enter the blockchain." The quotation issued by the user returns to enter Market list for other users to choose from.

The official explanation is that the reason why the AMM liquidity pool is not used to support fixed interest rates is that it is difficult to correctly simulate the impact of price impact/slippage on interest rates; , weekly maturity date), a large amount of capital needs to be invested to maintain liquidity. in this case,The order book model can effectively solve these problems: the limit order system can correctly reflect the nonlinear and time dependence of actual supply and demand; there is no need to prepare funds in advance when placing an order.“The order book model has proven effective for slower, more illiquid products such as NFTs (e.g. Opensea). Likewise, this model works well for slower-trading products (e.g. fixed income).”

In addition, in terms of collateral types, Qoda focuses on providing a lending market for Polkadot ecological tokens (parallel chain tokens and altcoins). “Since the market model improves the efficiency of price discovery and capital allocation, Qoda can provide better lending services for various parachain tokens.”

In terms of tokens, QODA is the original token of the protocol. The total amount is fixed at 1 billion, but it does not have any utility. Users can pledge QODA to generate veQODA, which has three functions: (1) Governance of DAO rights; (2) Agreement The income will be distributed to veQODA holders according to percentage; (3) QODA issuance will also be distributed to veQODA holders according to percentage.

In terms of the team, the co-founder Geoffrey Tsui was in charge of foreign exchange derivatives business at Deutsche Bank and has eight years of experience as an algorithmic trader; the co-founder Dhruv Dang has more than 15 years of experience in cross-industry software construction. products), Apple (software engineering), and Change.org (software engineering).

Friends who are interested in the latest progress of QODA can pay attention to its TwitterOdaily's [New Projects] column aims to help early Web3 projects gain market exposure opportunities. If you are also a Web3 entrepreneur, please follow the official Twitter @OdailyChina, private message [seeking reports], send your project introduction and contact information, we Will communicate with you as soon as possible.official website。

Odaily's [New Projects] column aims to help early Web3 projects gain market exposure opportunities. If you are also a Web3 entrepreneur, please follow the official Twitter @OdailyChina, private message [seeking reports], send your project introduction and contact information, we Will communicate with you as soon as possible.