Traditional finance has been offering fixed interest rates for hundreds of years, and the mechanism is already very mature.

DeFi has chosen a different path, mainly using variable interest rates, over-collateralization, and automatic execution through smart contracts.
This design aims to maximize decentralization and transparency, but in practical use, it also introduces planning uncertainties caused by interest rate fluctuations, which to some extent creates a trust gap between TradFi and DeFi.
Many institutions and conservative investors still find it difficult to see DeFi as a mature and reliable financial tool.
Now, DeFi can try to learn some experience from TradFi by offering fixed interest rates on-chain.
There’s no need for banks or credit rating agencies as intermediaries; smart contracts automatically execute; maintaining over-collateralization and on-chain transparency, and adding clear maturity periods, managing different collateral types separately, and creating yield curves are also possible design options.
This is not a direct copy of traditional finance but an adjustment that leverages blockchain features.
Once the infrastructure matures, DeFi can occupy a place in the fixed income market with lower costs, 24/7 global availability, and full transparency advantages.
@TermMaxFi Fixed interest rates are the bridge that helps DeFi cross that trust gap. They turn DeFi from a parallel world into an infrastructure capable of connecting with the traditional financial system.
@TermMaxFi #TermMaxFi