📈 What are franchises on future rates in crypto?
Traditional financial markets rely on benchmarks such as LIBOR and SOFR, but the cryptocurrency market suffers from chaos and uncertainty. To make it more transparent, decentralized benchmarks for regulating fixed income need to be created, which could open new opportunities for DeFi. For example, forward rate agreements (FRAs) can help participants lock in future rates and protect against volatility.
Quick fact: About 10% of the global fixed income market consists of FRAs.
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