➥ Is Fixed-Rate Protocols the Future of Finance? DeFi yields are powerful but unpredictable. One day you earn 30%, the next it drops to 5%. Fixed-rate protocols are revolutionizing the game with stable, on-chain tradable yields, possibly the only DeFi product primed for immediate mass adoption. Let’s look at the projects leading this shift in our 30s report 🧵 — — — ► What Are Fixed Rate Protocols? Fixed-rate protocols bring stability to DeFi by turning volatile yields into predictable returns. They tokenize, strip the yield or benchmark yield-bearing assets so users can lock yield. This brief report covers four projects leading the fixed-income shift: ▸ @pendle_fi ▸ @spectra_finance ▸ @ipor_io ▸ @TreehouseFi — ► Pendle Pendle is a yield-trading AMM that splits yield-bearing assets into two tokens: ▸ PT: fixed income ▸ YT: variable yield It lets users trade yield itself instead of just staking or lending. ➤ Core Mechanic When users deposit a yield asset like $sUSDe, Pendle mints PT-sUSDe (redeemable at maturity) and YT-sUSDe (captures yield). Users can hold PTs for stable returns, trade YTs to speculate, or pair both for liquidity rewards, all without liquidations or lockups. ➤ Why It Matters It turns yield into a tradable market and enables strategies like points farming and arbitrage, integrating with @aave, @ethena_labs, and @MorphoLabs across major chains like @ethereum, @arbitrum, and @base, with TVL around $6.5B as of October 2025. ➤ Example ▸ sUSDe pools offer ~20% fixed yield ▸ @Plasma launch drew $318M TVL in days — ► Spectra Spectra brings yield stability to DeFi, letting users lock fixed returns or hedge rate volatility. ➤ Core Mechanic It supports ERC-4626 tokens like $csUSDL and $USR. Deposits mint two tokens: ▸ PT: fixed yield ▸ YT: variable yield Users can: ▸ Hold PTs for steady returns ▸ Trade YTs for exposure to rate changes ▸ Provide both in liquidity vaults for rewards Anyone can create custom pools, making the system fully permissionless. ➤ Why It Matters Spectra offers predictable income and shares 50% of revenue with stakers. Live on @avax, @SonicLabs, and Base with about $190M TVL as of October 2025. ➤ Example ▸ Fixed-rate $USDL pools offer 20%+ APY ▸ Expansion to Flare boosted liquidity — ► Fusion by IPOR Fusion brings interest rate swaps to DeFi, letting users hedge or speculate on rate movements with leverage and automation. ➤ Core Mechanic Fusion uses on-chain IPOR Indexes to price interest rate swaps and automate yield strategies. Users can: ▸ Enter swaps, paying fixed or receiving floating with leveraged exposure ▸ Use srUSD vaults to automate yield optimization across protocols ➤ Why It Matters Fusion blends DeFi yield aggregation with institutional-grade rate tools, offering risk-adjusted fixed returns without impermanent loss. Live on Ethereum, Arbitrum, and Base, with around $70M TVL as of October 2025. ➤ Example ▸ $srUSD vaults deliver 20%+ APY through automated swaps — ► Treehouse Treehouse builds benchmarks and infrastructure for fixed income in DeFi. It introduces: ▸ tAssets: enhanced LSTs like $tETH and $tAVAX ▸ DOR: on-chain rate benchmarks such as TESR for Ethereum staking ➤ Core Mechanic It uses MEY (Market Efficiency Yield) arbitrage to align staking yields toward risk-free levels. Users can stake, delegate to DOR operators, or integrate with protocols like TermMax for fixed borrowing. Live on Ethereum and Avalanche with $500M+ TVL and over 70K wallets as of October 2025. ➤ Why It Matters Treehouse standardizes yields for DeFi’s fixed income layer and enables tools like FRAs and fixed-rate markets. Integrations include @FalconXGlobal and @TermMaxFi. ➤ Example ▸ TESR benchmark underpins FRAs launched by FalconX ▸ TermMax uses DOR rates to offer fixed borrowing on LSTs — ► Wrap-Up Stablecoins gave DeFi a way to store value but not to grow it. Fixed-rate protocols changed that by making yields predictable and tradable. Pendle, Spectra, Fusion, and Treehouse each drive this shift: ▸ Pendle makes yield a tradable market ▸ Spectra locks stable returns through derivatives ▸ Fusion brings interest rate swaps on-chain ▸ Treehouse standardizes LST yields with benchmarks Together, they build DeFi’s fixed-income stack, where capital earns steady returns and stability meets growth.

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