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Why Onchain Rates Swing 40% in a Week, and What Would Stop It

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DeFi interest rate volatility is not a bug in the code. It is a design choice. Here is the mechanism behind the swings, and the four properties a rate needs before anyone can plan around it. Why Onchain Rates Swing 40% in a Week, and What W…

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Why Onchain Rates Swing 40% in a Week, and What Would Stop It
Coinmonks 3h ago

Why Onchain Rates Swing 40% in a Week, and What Would Stop It

DeFi interest rate volatility is not a bug in the code. It is a design choice. Here is the mechanism behind the swings, and the four properties a rate needs before anyone can plan around it. Why Onchain Rates Swing 40% in a Week, and What W…