Aave and Morpho users can now lock in a fixed rate on their positions for any term up to 90 days, with more rates and longer tenors coming soon.

Through onchain interest rate swap markets, Kairos lets you convert a variable rate into a fixed rate for a set term, without touching your original position. The swap offsets your floating exposure and leaves you with a fixed net borrowing cost or yield for the term. For example, a borrower of USDC from Aave can effectively convert their variable rate into a fixed-rate, giving them predictability in what they'll owe even if rates spikes. We've launched an initial set of markets supporting Aave's USDC borrow and supply rate as well as Morpho's USDC/cbBTC borrow rate, with additional rates, markets, and longer tenors coming in the days ahead.

Why Fixed Rates Matter

Almost all DeFi rates are variable, meaning they can fluctuate over the course of each day. The risk of interest rates spiking prevents borrowers from using onchain loans to fund long-term positions, as there is no predictability in what they will owe. Lenders must constantly reallocate to chase rates, or risk letting passive deposits underperform the market.

How Kairos Works

Kairos enables permissionless interest rate swap markets where users swap fixed and floating payments on an underlying rate. Your original borrow or lend position isn't touched; the swap simply offsets your floating exposure, fixing your net cost or yield for the term. Market creation is permissionless and each market's rate is set by an oracle, so swap markets can be spun up for any onchain or offchain rate.

Kairos rate lock interface converting a variable borrow rate into a fixed rate for a chosen term

Fixing a rate takes under a minute. Enter your loan balance, pick the borrow rate you're exposed to, and choose how long you want it fixed. Kairos quotes the fixed rate you'll pay and the collateral required to hold the position. The chart shows what you're actually buying: a rate that moves every day becomes a flat line for the term.

Getting Started

To get started, visit app.kairosswap.com, pick your rate and term, and purchase a swap to lock in a fixed borrow rate or yield. Today, users can select from a variety of terms between 1 and 90 days for Aave's USDC borrow rate. We plan to launch more rates, markets, and longer tenors in the coming days.

Kairos market page showing rate history for a swap market alongside the swap purchase panel

Every market gets its own page: the fixed rate on offer next to the current variable rate, the full history of the underlying rate, and the panel where you size a position and see the collateral required before committing.

Swap buyers are only one side of the market. Liquidity providers take the other, supplying the capital that buyers trade against.

Kairos liquidity supply view listing swap markets with their utilization and realized APY

Liquidity providers earn from utilization fees, risk premiums, and rate-movement P&L, and can withdraw any time a market has liquidity available. Each market shows how heavily it's being used and what it has actually returned.

If you have questions on using the protocol, please reach out to contact@kairosswap.com. Institutions and DeFi teams interested in specific rates or markets can reach out to partnerships@kairosswap.com.

Thomas and Vince

Co-Founders at Kairos