Overview
Crypto has variable rates everywhere, but fixed rates almost nowhere.
The Concept section explains how XCCY introduces a missing financial layer to crypto: on-chain fixed yield and fixed-rate borrowing, powered by an interest rate derivatives engine and bank-style risk management.
The Two Layers of XCCY
XCCY is built in two closely connected layers:
1. The Fixed Yield Layer
This is the user-facing layer.
It looks and feels familiar:
Fixed-term deposits
Fixed-rate loans
Predictable outcomes over a known period
Users don’t trade derivatives here. They simply choose:
A rate
A term
A position (lend or borrow)
Under the hood, these products are hedged using interest rate swaps, but users never need to think about that.
This layer is designed for:
DeFi users who want certainty
DAOs and treasuries
Long-term borrowers
Applications that need stable pricing
The Fixed Yield Layer pages explain how lending, borrowing, fees, and risks work from a user perspective.
2. The Derivatives Layer
This is the engine beneath everything.
Here, users can trade interest rate swaps directly:
Fixed vs floating yield
Across lending markets, staking yields, and real-world assets
Over defined maturities
This layer is for:
Traders hedging rate exposure
Funds expressing views on yield
Liquidity providers earning from rate markets
Advanced users who want direct control
The Derivatives Layer pages explain swaps, risks, and fees.
Risk Comes First
Everything in XCCY is built around risk measurement and control.
Unlike typical DeFi protocols that rely on simple collateral ratios, XCCY measures interest rate sensitivity directly. This allows the protocol to understand how positions behave when rates move, not just how large they are.
The Risk Management section explains:
How interest rate risk is measured
Why portfolio-level margining matters
How correlated positions can reduce risk
How collateral is managed across the system
This is what makes fixed rates possible without hiding risk or pushing it off-chain.
Trading and Liquidity
XCCY is not just a lending protocol—it’s a rates market.
Users can:
Hedge existing yield exposure
Speculate on rate movements
Provide liquidity to earn yield from swaps
Settle positions at maturity
Interact with liquidations and risk backstops
The Trading section explains how these activities work conceptually, and how the protocol stays solvent during volatility.
XLP: Where Yield Comes From
Fixed rates don’t exist without someone taking the other side.
XLP is the liquidity backbone of XCCY. It’s structured into tranches so different participants can choose how much risk and return they want:
Senior Tranche: conservative, steady yield
Junior Tranche: higher risk, higher return
Alien Vaults: partner-created strategies built on top of XCCY
The XLP section explains how liquidity supports fixed rates, and how yield is generated without relying on incentives.
How to Use This Section
If you’re new:
Start with Fixed Yield Layer
Then read Risk Management
If you’re a trader:
Start with Derivatives Layer
Then Trading and XLP
If you’re integrating XCCY:
Read everything once
Then jump to Developers
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