Fixed Rate

In a fixed-rate, fixed-term structure, both the interest rate and the duration are defined at the time a position is created and remain unchanged until maturity.

This structure provides:

• Borrowers with upfront clarity on their rate, enabling predictable cost of capital and more efficient peer-to-peer execution.
• Lenders with guaranteed rates that are unaffected by market volatility, enabling to allocate capital over longer time periods with certainty.

How Fixed-Rates Work on Tenor

Tenor offers fixed-rate, fixed-term lending and borrowing through the Morpho V2 protocol. When a user initiates a position through Tenor, they are matched with a counterparty at an agreed rate and for a set duration on Morpho V2. For borrowers, the collateral currencies are deposited on the Morpho contract and funds are sourced from the counterparty programatically. At maturity, if the position is not renewed, the collateral deposited by the borrower can be programatically sold to repay the debt, ensuring the lender can withdraw their funds.

Tenor provides a streamlined interface along with advanced tools to simplify access to fixed-rate markets, manage positions, and facilitate renewals at maturity.