The First DAI Interest Rate Swaps Launch on Delta Exchange

Ashnil Vaitla

Delta Exchange (http://prod-wp.delta.exchange), a digital asset derivatives exchange, announced today the launch of the first interest rate swaps on Maker DAO’s stablecoin, DAI. The DAI savings rate contracts come with up to 160x leverage on the notional value and opens for trading on Delta Exchange at 9:00 AM EST on 24th, July 2020. 

DAI is a decentralized stablecoin created by Maker that currently represents close to a quarter of the $3 billion USD locked in DeFi. However, unlike fiat-backed stablecoins, Dai is backed by a surplus of collateral locked in the Maker Vaults. Holders of the Dai stablecoin earn interest via the Dai Savings Rate (DSR) by locking it in a special smart contract.

“Interest rates in DeFi vary based on platform and market conditions, which makes it difficult for borrowers to manage cash outflow and lenders to predict how much interest deposited funds can earn,” said Pankaj Balani, CEO of Delta Exchange. “With the launch of Interest Rate Swaps for the single biggest asset in DeFi, we aim to empower borrowers with better instruments to manage variable risks and liabilities.”  

Delta Exchange’s Interest Rate Swap contracts provide a way for businesses and hedge funds to swap variable interest costs with one that is predictable and fixed. Now, with support for Dai Interest Rate Swaps on Delta Exchange, borrowers and lenders can hedge against the variability of the Dai stability fee. 

Beginning today, quarterly expiries for DAI interest rate swaps (IRS) will be available on Delta Exchange. The DAI savings rate contracts come with up to 160x leverage on the notional value and are now open for trading. More details can be found on the Delta Exchange blog or at. http://prod-wp.delta.exchange/blog/.