Blume enables users to earn guaranteed interest rates on their favorite DeFi protocols. Blume provides an API that allows protocols to easily turn their existing offerings into fixed-term deposits with guaranteed interest rates.
This type of market is viable if its structured as an interest rate swap between a variable and fixed rate
Incentive to buy the variable comes from the low margin requirement, which means leveraged exposure to the yield can easily be taken in without multiplying exposure to beta of the underlying
Very interesting! I can see the network-effect element to your mechanism design in your white paper. Do you need liquidity providers with this design?
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@g1g We don't need liquidity providers as a third party -- users taking liquidity on one side of the market are providing liquidity on the other side and vice-versa.
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Hey everyone! We're building Blume to solve a mismatch between the risk profile of DeFi protocols and the risk preferences of users:
Yields aren't stable enough for conservative yield-seeking users, but they also aren't high enough for speculators. In a nutshell, Blume redistributes interest rate risk from users who don't want it, to those who want more of it.
This looks awesome, adding stability to yield. Stability to stablecoin yield would be even awesome-r.
If you're interested in supporting growth through referrals, I'd love to chat.
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