IPOR, the Inter Protocol Over-block Rate, is the Credit Hub of DeFi.​

It is the first attempt in DeFi to establish a yield curve representing the average cost of borrowing in DeFi with information published on-chain by the largest credit market protocols in DeFi - Aave, Compound, DAI's DSR, and Lido.

The IPOR Protocol consists of two main parts: 1. A benchmark interest rate for DeFi (“The Index”). Currently available for stETH, USDT, USDC, and DAI. These are calculated and published on-chain - public goods in the Ethereum ecosystem. 2. A suite of interest rate derivative DEXes (“The IRDs”) that quote rates for 28, 60, and 90-day interest rate swaps for the above markets.

IPOR, the Inter Protocol Over-block Rate, is the Credit Hub of DeFi.​

It is the first attempt in DeFi to establish a yield curve representing the average cost of borrowing in DeFi with information published on-chain by the largest credit market protocols in DeFi - Aave, Compound, DAI's DSR, and Lido.

The IPOR Protocol consists of two main parts: 1. A benchmark interest rate for DeFi (“The Index”). Currently available for stETH, USDT, USDC, and DAI. These are calculated and published on-chain - public goods in the Ethereum ecosystem. 2. A suite of interest rate derivative DEXes (“The IRDs”) that quote rates for 28, 60, and 90-day interest rate swaps for the above markets.

The IPOR Index​

Currently, there are four IPOR rates - stETH, USDC, USDT, and DAI which have essentially different rate behavior. These are all currently spot rates, as there is really no yield curve in DeFi, and the lack of the yield curve presents the index with a huge market opportunity.

The IRDs​

IPOR interest rate swaps are available in 28, 60, and 90-day tenors (durations) and offer up to 500x leverage, making them extremely capital efficient.

IPOR plans to mature into a fully community-driven DAO. IPOR Labs is transferring ownership into the IPOR DAO, and complete ownership and control of the IPOR Protocol will be in the IPOR token holders. IPOR labs will continue to participate and make proposals; however, the ultimate approval will be in a decentralized manner via the DAO.

What is IPOR?​

IPOR, the Inter Protocol Over-block Rate, stands as the Credit Hub of DeFi, pioneering a yield curve that reflects the average cost of borrowing within decentralized finance. This innovative approach leverages on-chain data from major credit market protocols like Aave, Compound, DAI's DSR, and Lido.

The IPOR Protocol is bifurcated into two primary components. First, the benchmark interest rate for DeFi, known as "The Index," which is currently available for stETH, USDT, USDC, and DAI. These rates are calculated and published on-chain, serving as public goods within the Ethereum ecosystem. Second, a suite of interest rate derivative DEXes (The IRDs) offers rates for 28, 60, and 90-day interest rate swaps, providing up to 500x leverage for enhanced capital efficiency.

The IPOR Index includes four distinct rates—stETH, USDC, USDT, and DAI—each exhibiting unique rate behaviors. These rates are spot rates, highlighting the absence of a traditional yield curve in DeFi and presenting a significant market opportunity for the index.

IPOR interest rate swaps, available in 28, 60, and 90-day tenors, offer substantial leverage, making them highly capital efficient. The protocol aims to evolve into a fully community-driven DAO, with IPOR Labs transitioning ownership to the IPOR DAO. Complete control of the IPOR Protocol will eventually rest with IPOR token holders, while IPOR Labs will continue to participate and propose initiatives, subject to decentralized approval via the DAO.

What is the technology behind IPOR?​

The technology behind IPOR (IPOR) is a fascinating blend of traditional financial principles and cutting-edge decentralized finance (DeFi) innovations. At its core, IPOR operates on the Ethereum blockchain, leveraging its robust and secure infrastructure to provide a transparent and decentralized financial ecosystem. This blockchain is renowned for its smart contract capabilities, which are essential for executing complex financial transactions without the need for intermediaries.

One of the standout features of IPOR is its use of the Compound governance module and interest rate derivative decentralized exchanges (DEXes). These components are integral to the protocol's functionality, allowing it to offer a benchmark interest rate for DeFi, known as "The Index." This index is currently available for assets like stETH, USDT, USDC, and DAI, and it represents the average cost of borrowing in the DeFi space. The rates are calculated and published on-chain, ensuring transparency and accessibility for all users.

The Ethereum blockchain, on which IPOR operates, employs a proof-of-stake (PoS) consensus mechanism. This mechanism is crucial for maintaining the network's security and preventing attacks from bad actors. In PoS, validators are chosen to create new blocks and confirm transactions based on the number of tokens they hold and are willing to "stake" as collateral. This system makes it economically unfeasible for malicious entities to compromise the network, as they would need to control a significant portion of the total staked tokens.

IPOR also introduces a suite of interest rate derivative DEXes, known as "The IRDs." These DEXes offer interest rate swaps with tenors of 28, 60, and 90 days, providing users with the ability to hedge against interest rate volatility. The swaps are highly capital efficient, offering up to 500x leverage. This feature is particularly beneficial for traders and investors looking to maximize their returns while managing risk.

Another critical aspect of IPOR's technology is its commitment to decentralization. The protocol is designed to evolve into a fully community-driven decentralized autonomous organization (DAO). IPOR Labs, the team behind the protocol, is in the process of transferring ownership and control to the IPOR DAO. This transition ensures that the future development and governance of the protocol will be in the hands of IPOR token holders, promoting a truly decentralized financial ecosystem.

The IPOR Index and IRDs are not just theoretical constructs; they are practical tools that provide real-world benefits. For instance, the IPOR Index offers a transparent and reliable benchmark for interest rates in the DeFi space, which can be used by various financial applications and institutions. On the other hand, the IRDs enable users to engage in sophisticated financial strategies, such as hedging and speculation, without relying on centralized entities.

By integrating these elements, IPOR aims to improve transparency and eliminate centralization in the world of cryptocurrency. The protocol's innovative approach to interest rate derivatives and its commitment to decentralization make it a significant player in the DeFi landscape. The use of established financial primitives, combined with the flexibility and security of the Ethereum blockchain, positions IPOR as a pioneering force in the ongoing evolution of decentralized finance.

What are the real-world applications of IPOR?​

IPOR (IPOR) stands for Inter Protocol Over-block Rate and serves as the Credit Hub of decentralized finance (DeFi). It aims to establish a yield curve that represents the average cost of borrowing in DeFi, with information published on-chain by major credit market protocols like Aave, Compound, DAI's DSR, and Lido.

One of the primary applications of IPOR is creating a benchmark interest rate for DeFi, known as "The Index." This index is currently available for stETH, USDT, USDC, and DAI. These rates are calculated and published on-chain, making them public goods within the Ethereum ecosystem. The IPOR Index provides a standardized measure of interest rates, which is crucial for the transparency and efficiency of DeFi markets.

Another significant application is the suite of interest rate derivative decentralized exchanges (DEXes), referred to as "The IRDs." These DEXes offer interest rate swaps for 28, 60, and 90-day durations, allowing users to hedge or speculate on interest rate movements. The availability of these swaps with up to 500x leverage makes them highly capital efficient, enabling sophisticated financial strategies within the DeFi space.

IPOR also plays a role in fixed-rate lending and borrowing, which is essential for users who seek predictable financial planning. By providing a reliable benchmark, IPOR facilitates more stable and predictable interest rates, which can be beneficial for both lenders and borrowers.

The governance of IPOR is community-driven, with the protocol undergoing rigorous audits before new products and features are introduced. This ensures that the system remains secure and trustworthy, fostering greater adoption and innovation within the DeFi ecosystem.

In addition to its financial applications, IPOR has potential uses in various industries such as healthcare and logistics, where standardized interest rates and financial derivatives can optimize operational efficiencies and risk management.

What key events have there been for IPOR?​

IPOR, the Inter Protocol Over-block Rate, stands as a pioneering force in the DeFi landscape, aiming to establish a yield curve that represents the average cost of borrowing within decentralized finance. This innovative approach is underpinned by data published on-chain from major credit market protocols like Aave, Compound, DAI's DSR, and Lido.

One of the earliest significant milestones for IPOR was the publication of the IPOR Index on-chain. This index serves as a benchmark interest rate for DeFi, currently available for stETH, USDT, USDC, and DAI. These rates are calculated and published on-chain, making them public goods within the Ethereum ecosystem. The introduction of the IPOR Index marked a crucial step in providing transparency and standardization to the DeFi borrowing landscape.

Another pivotal event was the utilization of the Compound governance module. This integration allowed IPOR to leverage the robust governance framework of Compound, enhancing its protocol's governance and operational efficiency. The adoption of such a governance module underscores IPOR's commitment to decentralized and community-driven decision-making processes.

The launch of the IPOR Stake Rate Swap further expanded the protocol's offerings. These interest rate swaps are available in 28, 60, and 90-day tenors and offer up to 500x leverage, making them highly capital efficient. This development provided DeFi users with sophisticated financial instruments to hedge and speculate on interest rate movements, thereby increasing the protocol's utility and appeal.

IPOR's manifesto, which outlines its vision and guiding principles, has been a cornerstone document for the community. This manifesto not only articulates the protocol's mission but also sets the stage for its evolution into a fully community-driven DAO. The transition of ownership from IPOR Labs to the IPOR DAO signifies a move towards complete decentralization, where IPOR token holders will have ultimate control over the protocol.

Conferences and industry events have also played a significant role in IPOR's journey. Notably, discussions at Token2049 highlighted the protocol's innovative approach and its potential impact on the DeFi ecosystem. Such platforms have been instrumental in raising awareness, fostering collaborations, and driving the adoption of IPOR's solutions.

The Ethereum Community Conference (EthCC), L2con, and the Blockchain Futurist Conference are among the upcoming events where IPOR's developments and future plans are likely to be showcased. These gatherings provide valuable opportunities for networking, knowledge sharing, and exploring new avenues for growth and innovation within the DeFi space.

IPOR's roadmap includes plans to mature into a fully community-driven DAO, with IPOR Labs transferring ownership into the IPOR DAO. This transition will ensure that complete ownership and control of the IPOR Protocol rest with IPOR token holders, promoting a decentralized governance model. IPOR Labs will continue to participate and make proposals, but ultimate approval will be conducted in a decentralized manner via the DAO.

The protocol's continuous evolution and adaptation to the dynamic DeFi landscape highlight its commitment to innovation and community empowerment. As IPOR progresses, its impact on the DeFi ecosystem is expected to grow, driven by its foundational principles and the active participation of its community.

Who are the founders of IPOR?​

IPOR, the Inter Protocol Over-block Rate, is the Credit Hub of DeFi, aiming to establish a yield curve for the average cost of borrowing in decentralized finance. The founders of IPOR are Darren Camas and Dimitar Dinev. Darren Camas, who also serves as the current CEO, has a background in blockchain technology and has been involved in various cryptocurrency projects. Dimitar Dinev brings his expertise in financial markets and blockchain development to the table. Together, they have driven the creation and development of IPOR, focusing on providing benchmark interest rates and interest rate derivative DEXes for the DeFi ecosystem.