Vanilla Swap (IRS)

Vanilla Interest Rate Swaps (IRS) are the core building block of XCCY.

Fixed vs Floating Yield

IRS allows users to exchange variable yield for fixed yield, or vice versa, over a defined term—fully on-chain and without intermediaries.

If Locked Yield is the “bank product,” swaps are the engine underneath

What a Swap Is

A vanilla interest rate swap is an agreement where:

• One side pays a fixed rate

• The other side pays a floating rate

• Only interest differences are settled—no principal moves

You are trading rate exposure, not assets.

How XCCY Swaps Work

Each swap references a specific yield source and term.

Supported Underlyings:

• A stablecoin lending rate

• A staking or restaking yield

• A real-world asset coupon

When you enter a swap:

• You choose fixed or floating exposure

• The protocol tracks rate movements over time

• PnL accrues based on how rates evolve relative to your position

Settlement happens continuously or at maturity, depending on the product.

Coin-Set vs USDC-Set

XCCY swaps support two settlement modes, depending on the pool:

Coin-Settled

• PnL is settled in the same asset as the rate reference

• Example: ETH yield settles in ETH

• Natural hedge for users holding or deploying that asset

Coin-set swaps are preferred when:

• Managing native yield exposure

• Hedging staking or restaking returns

• Keeping balance sheets asset-native

USDC-Settled

• PnL is settled in USDC, regardless of the underlying rate

• Decouples rate exposure from asset price volatility

• Easier accounting and PnL management

USDC-set swaps are preferred when:

• Trading rates independently of asset price

• Managing treasury exposure

• Running relative-value strategies

Settlement mode does not change the rate logic—only how gains and losses are paid.

Fixed vs Floating Positions

Pay Fixed / Receive Floating

You:

• Lock in a fixed rate

• Benefit if floating yields rise above it

• Lose if floating yields fall below it

Common use cases:

• Hedging fixed-rate liabilities

• Expressing a view that yields will rise

Receive Fixed / Pay Floating

You:

• Lock in a fixed yield

• Benefit if floating yields fall

• Lose if floating yields rise

This position is how fixed deposits and fixed-rate loans are hedged internally.

Tenors and Maturity

XCCY swaps are term-based, not perpetual.

Each pool supports specific tenors, such as:

• Short-term (ON - 1W)

• Mid-term (2W-1M)

• Long term (3M - 5Y)

At maturity:

• The swap settles

• All rate exposure ends

• Final PnL is realized

This structure makes swaps suitable for treasury planning and fixed-income strategies.

Available Pools

• vUSDT & aUSDT: short/mid-term - one of the main USDT lending market

• vUSDC & aUSDC: short/mid-term - one of the main USDC lending market

• sUSDe: mid/long-term - to mitigate volatility of Ethena stablecoin yield

• vETH & aETH: short/mid-term - one of the main ETH lending market

Coming soon

• weETH: mid/long term for restakers to be safe

• PT-sUSDe: maturity-dependent

• YT-sUSDe: maturity-dependent, to swap high-volatile yield

• USTB / USCC / USDtb / other tokenised funds: mid/long term for better budgeting when allocating to these funds

• Morpho top-10 volume vaults

• Fluid fUSDT, fUSDT0 (Plasma), fUSDC, fUSDe

• Other popular lending protocols, stablecoins and RWAs

We do not list perpetual funding rates swaps due to large existing markets of them via perpetuals.