While decentralized finance ( defi) continues to innovate, it still lacks a critical component that has long been foundational in traditional finance: fixed-income products. I sat down for a great conversation with Jerry Li, co-founder and CEO of Term Structure, who introduced me to the idea of fixed-income products in crypto.
Building a Yield Curve for Defi
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Why Fixed-Income Could Be the Key to DeFi’s Revival: Insights from Term Structure’s CEO Jerry Li
Term Structure is a decentralized fixed-income protocol to facilitate peer-to-peer lending and borrowing with fixed interest rates.
Term Structure is the kind of project that I feel is often overlooked due to the complexity of its products, in this case fixed-income. Jerry, who previously worked at Deutsche Bank where he was intimately familiar with fixed-income products, did a great job of dumbing down these concepts enough for me to understand them in broad strokes.
Jerry impressed upon me the importance of fixed-income in undergirding the traditional financial system. He went into the details about why this is the case, citing the yield curve. Crypto and defi do not have a yield curve, a fact that Jerry believes is holding back the space. Jerry convinced me that he’s right.
As an avid fan of defi, and thus a mourner of its performance these past few years, Term Structure really excites me. It has the potential to help resuscitate defi. Listen to Jerry explain why.
Do you think fixed-income products will have a major impact on defi? Share your thoughts and opinions about this subject in the comments section below.
