Strips Finance is a fixed-income platform. Our aim is to build an open platform to trade, create and invest in fixed-income products. Our first product is Strips Exchange, an interest rate derivatives exchange.
In building our long term vision, our first goal is to create a robust and efficient marketplace for people to trade interest rate yields. Strips Exchange is the world's first decentralized interest rate derivatives trading platform.
Interest rate swaps (IRS) allow participants to swap variable interest rates for fixed interest rates. The IRS market is one of the largest pillars of finance. DeFi needs an interest rate swaps market. Strips Exchange aims to solve this problem by building the first natively decentralized interest rate derivatives exchange. Strips will grow to be the premier marketplace for fixed income.
At inception, we focused on building around three key pillars:
Alice wants to enter a yield farm on Nerve.fi that is currently yielding a variable 115% APY. However, Alice is worried that the rate will drop in the future, and she would instead like to lock in 100% yield for 1 year. Alice enters Strips.finance and sells the equivalent USD amount in NRV-3Pool perpetual interest rate swaps. After 1 year, regardless of where the yield on NRV-3Pool is, Alice will receive 100% in total yield, combined from her yield farming rewards and profits from her interest rate swap position.