Borrowing
Locked Yield Borrowing lets you borrow at a fixed interest rate for a predefined term.
Fixed-Rate Loans
Your cost is known upfront and does not change, regardless of market conditions.
What You Get
Fixed borrowing rate locked at entry
Known total interest cost over the term
No exposure to rate spikes or utilization jumps
Stable health factor under normal market conditions
This is a rate lock, not a variable-rate loan.
How Fixed-Rate Borrowing Works
When you open a fixed-rate loan, XCCY locks your future borrowing cost using the most efficient available structure:
Direct matching with fixed-rate lenders when liquidity exists
Synthetic fixed-rate exposure when matching is unavailable
The protocol absorbs floating-rate risk internally. You only see the fixed rate.
Why Fixed Borrowing Is Safer
Variable-rate loans can become unmanageable during market stress. Rates spike exactly when leverage matters most.
Fixed-rate borrowing removes that uncertainty:
Interest payments do not increase
Risk is easier to model
Positions are easier to manage over time
This is especially useful for long-term strategies, structured products, and treasury financing.
Capital Efficiency
Collateral is managed at the portfolio level:
Only the portion required to hedge rate exposure is constrained
Remaining collateral is handled efficiently by the protocol
Health factors are adjusted dynamically, not statically
This allows for higher capital efficiency than isolated fixed-rate borrowing models, without increasing liquidation risk.
Repayment and Maturity
Loans run for a fixed term
Interest is fixed from entry
At maturity, the loan is settled automatically
Early repayment or exit is settled at prevailing market rates and may differ from the original fixed APR.
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