Earn 102% Lending Stablecoins by Defi Dad

Fixed income refers to types of investments that pay investors fixed interest or dividend payments until a maturity date. At maturity, investors are repaid the principal amount they had invested, typically with a form of fixed interest or dividends.

In DeFi, we’re accustomed to mostly variable rates which we earn by lending assets to pools of borrowers. The greater supply available to lend and less borrowing demand, the lower the lending rates vs the less available assets being lent and more borrowing demand, the higher the variable rate.

Ruler is a newer peer-to-peer DeFi borrowing and lending platform, offering loans that are free of liquidation risk while offering lenders a new pseudo-fixed rate of return. It’s yet another example of DeFi becoming more sophisticated in its offerings and mirroring the utility of popular products in traditional finance.

• First, Ruler allows people to borrow stablecoins without risk of losing their crypto collateral due to price volatility, meaning there’s no risk of liquidation.
• To provide for non-liquidation, Ruler loans have fixed terms, normally one month.
• Ruler incentivizes lenders of USD-pegged stablecoins to provide loans, with both interest and farming rewards of its RULER token.
• Ruler also allows people to invest in the Ruler project itself, by sharing platform revenue with holders of its RULER token, but we’ll focus today strictly on the ability to earn lending interest.
• Today, there’s already over $133M in TVL among borrowers and lenders on Ruler.

Because Ruler truly only has one rule--to pay back your loan on time, it presents an interesting opportunity for lenders seeking higher interest rates that are essentially fixed, or at least able to be anticipated based on when you deposit stablecoins. Alternatively, borrowers can sleep on the fact that