Has raised $2.5 million, how does Tenor match borrowers with fixed interest rates? |Super early project attention

Encrypted winter creates new demand: fixed-rate lending agreement Tenor receives $2.5 million in seed round financing

In the crypto market downturn, stable-yield products were popular, with fixed-rate lending agreements particularly eye-catching. On February 25, fixed-interest lending platform Tenor announced that it had completed a $2.5 million seed round of financing, led by Cherry Crypto, and participated in the investment by Coinbase Ventures, Curved Ventures, Moonwell, Etherfi protocol developers, etc.

Tenor is different from mainstream floating-rate lending agreements such as Aave and Compound, and is committed to building a fixed-rate lending infrastructure.

Tenor: Build a fixed-rate lending infrastructure

Tenor made its debut in August last year with the goal of providing first-class fixed-rate lending infrastructure for the blockchain economy, supporting anyone to deploy fixed-rate lending market products and achieve lending matching at fixed-rate interest rates.

Tenor is not a simple lending application, but a platform for building lending products. It provides a complete set of toolkits where developers can deploy fixed-rate features or products without permission, such as extending fixed-rate features on existing agreements such as Aave and Morpho.

At present, the on-chain lending market is mainly dominated by floating interest rate agreements such as Aave, Compound and Morpho. These protocols have been run relatively stable after multiple iterations and risk management optimization. However, the characteristics of floating interest rates, such as Aave's loan interest rate fluctuation range (3.16%-60%), especially during the market's peak period, interest rates may rise sharply, and lending spreads may reach as high as 20%-40%, while interest rates will plummet in the trough period, affecting the user experience.

Although encrypted native users may be more adaptable to this, institutional users are more sensitive to this, which limits the expansion of the on-chain lending market to traditional financial use cases. As more institutional users and funds enter the chain, demand for fixed interest rates continues to grow.

Tenor aims to introduce more diverse lending products through an efficient fixed-rate lending infrastructure that allows borrowers and lenders to match directly at fixed-rate rates.

Operational mechanism: On-chain version of P2P lending

Tenor builds a fixed-rate AMM based on Uniswap V4 Hook, which supports users to borrow at fixed-rates and can be integrated with other lending agreements.

Tenor borrowed from Morpho's P2P order matching mechanism to support anyone to create a fixed interest rate fund pool, set a fixed interest rate and term, reduce structural interest rate spreads, and allow the borrower to clarify the borrowing costs and match the borrower and lender on demand.

Tenor provides a set of AMM toolkits that allow users to set specific interest rates, maturity dates, etc. Users create funds pools, setting interest rates, term, mortgage assets, or other restrictions (for example, lenders can set limit orders).

Tenor's operating mechanism is similar to the P2P lending of traditional finance, providing a lender matching platform. The fund provider issues a loan subject with a fixed interest rate and term, and the fund demander selects a matching subject and repays the principal and interest upon maturity.

Tenor's fixed interest rate provides a more predictable experience for borrowers and lenders, solves the user experience and capital efficiency issues of existing floating interest rate agreements, and supports integration with Aave, Uniswap and other platforms to create fixed interest rate fund pool products.

Uniswap subsidizes audit fees, seed round financing of US$2.5 million

Tenor is developed based on Uniswap V4 Hook and has participated in the Uniswap Hook Incubator activity. On January 23, the Uniswap Foundation announced the first nine projects to receive audit subsidies, including Tenor, whose security audit fees will be supported by Uniswap Hook Incubation Bonus (US$1.2 million).

Tenor is scheduled to be audited in 2025, with Spearbit being provided.

On February 25, Tenor announced the completion of a seed round of $2.5 million.

At present, Tenor products are still being deployed in the test network and provide streamlined applications for early users to test core functions.

(This article only introduces early projects and does not constitute investment advice.)

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