Lock a fixed rate

Who it's for

You want predictable returns: a known rate until a known date. Maybe you think floating rates will fall, or you're saving toward a date.

Where the yield comes from

On Exponent, someone else buys the floating yield (YT) from you. You keep the principal token (PT), bought at a discount and redeemable one-for-one at maturity. The discount is your fixed return.

On Loopscale, you lend directly to borrowers at a fixed rate and term through an order book.

Steps: fixed yield with a PT

1. Open Exponent and browse markets by asset and maturity.
2. Note the implied fixed APY and the maturity date.
3. Buy the PT with your asset. The app shows exactly how much you'll redeem at maturity.
4. Hold to maturity, then redeem for the underlying.

Steps: fixed-term lending

1. Open Loopscale and pick a Vault or Advanced Lend.
2. Choose the term and rate you're offered (or place your own).
3. Lend. Your capital is committed until the term ends.

What to expect

You'll see the fixed rate before you commit. Compare it with today's floating lending rate: a fixed rate below floating is worth it only if you expect floating to fall, or you value certainty.

Risks

• Exiting early. A PT's price moves like a bond: if rates rise after you buy, selling before maturity can lock in a loss. Plan to hold.
• Underlying risk. The PT is only as good as what it redeems into (a stablecoin, LST or RWA).
• Thin markets. Check price impact before large buys.
• Loopscale has merger news (with Orca, into Formation); watch announcements for product changes.

Exit plan

Best: wait for maturity and redeem. If you must exit, sell the PT on Exponent at the market price, ideally when rates have fallen (which raises PT prices).

Level up

Match a fixed borrow (Kamino Fixed Rates) with fixed income, or use PTs as collateral where supported.