Long-term survival in the DeFi market requires hedging skills. However, most people are used to hedging with contracts, but there is a more stable way—fixed interest rate lending. This method is often overlooked, but it has a unique advantage in reducing the volatility of borrowing costs.

Recently, I have noticed some protocols making breakthroughs in this area. Fixed interest rate lending allows you to lock in costs in advance and avoid the trouble of interest rate fluctuations. This pain point is very real: in traditional lending, interest rates fluctuate high and low, making costs completely uncontrollable. The emergence of fixed interest rates makes the hedging logic clearer and more predictable. From this perspective, the DeFi risk management toolbox has gained another powerful tool.