Yield Protocol allows for fixed-rate borrowing and lending for fixed terms.
Yield is a protocol that offers fixed-rate yield products for both borrowers and lenders. Borrowers deposit ERC-20 tokens on the platform and choose from a few maturity dates for the loans. The fixed rates are guaranteed until the loan matures. After that, the user interest rates will change to a variable rate. Users can repay the loan at any time, with early repayment potentially impacting the effective interest rate received. Lenders on Yield are essentially buying future cash payments from borrowers at a discount. These future cash payments are represented by fyTokens. fyTokens can be redeemed 1-to-1 for a base asset at some future date. These tokens are similar to zero-coupon bonds in the sense that they do not pay interest but rather trade at a discount and can be redeemed for a profit when they are redeemed for their full face value. fyTokens are fungible and the user's position can be closed at any time by selling the fyTokens, though this may change the effective interest received. Users can also deposit assets into liquidity pools on Yield that earns fees from borrowers and lenders. When the liquidity pool's maturity date is reached, strategies automatically rollover liquidity from one pool to a later-dated pool. Yield pools all funds to earn variable fees from automated market makers (AMMs) like Uniswap or Curve. This means users may experience impermanent loss and returns are not guaranteed.
Yield does not currently have any protocol fees. In the future, the protocol will have an option to turn on fees to charge borrowers on the platform.
You can deposit assets on Yield to earn a fixed yield rate based on the maturity date.