An increasingly apparent deep contradiction in the on-chain lending market is becoming clear: borrowers want stable and predictable financing costs, but the current mainstream platforms all operate on floating interest rate models. As the scale of on-chain finance expands and project cycles lengthen, this mismatch problem will become more prominent.

Why do borrowers need fixed interest rates? The reasons are quite practical. Traditional private debt and corporate financing have long validated this—borrowers care most about cash flow predictability. Fixed rates can directly hedge against rising benchmark interest rates, making financial planning clearer and reducing pressure for subsequent financing. For high leverage or long-cycle projects, sudden interest rate fluctuations can directly threaten survival.

Lenders, on the other hand, have a completely different perspective. Floating interest rates are more advantageous for them—the "benchmark rate plus credit premium" pricing model can protect profits when rates rise, reduce maturity risk, and allow them to earn extra when benchmark rates go up. Unless lenders can effectively hedge interest rate risk or receive sufficiently high risk premiums, they generally won't proactively offer fixed-rate products.

What does this imply? Fixed interest rate products fundamentally exist to meet the borrower's need for certainty, and are not a natural market state.

This logic has important implications for DeFi: if borrowers do not have a clear and sustained demand for "interest rate certainty," the fixed-rate lending market will struggle to accumulate liquidity, scale up, and achieve sustainable development. Currently, on-chain activity is mainly driven by short-term speculation, lacking genuine demand from long-term productive capital for stable financing costs. Without this demand, fixed-rate products are like a waterless source—difficult to grow into a mighty tree.