In this episode, we are joined by Darren and Dimitar from IPOR Labs to breakdown the complex world of interest rate derivatives. Together with our hosts Kepler and Brucey, the group discusses DeFi's need for an interest rate index as a public good, how this is used in TradFi, and the opportunities for DeFi users.
0:00:00 - Opening
0:02:32 - Darren Camas (CEO) and Dimitar Dinev (CSO) introductions.
0:07:46 - The vision of IPOR.
0:15:56 - How will IPOR, as a public good, improve DeFi?
0:18:41 - Why is a DeFi yield curve needed (esp. for institutions)?
0:25:25 - How can traders and liquidity providers use the IPOR Protocol?
0:31:15 - Why is leverage in interest rate swaps less risky than perpetuals?
0:35:37 - Why increasing leverage in interest rate swaps does not increase risk?
0:37:50 - The difference between interest rate swaps and perpetuals.
0:40:45 - How is risk modelled for IPOR interest rate swaps?
0:49:45 - Real yield and risks for IPOR liquidity providers (comparison with perpetuals)
0:55:38 - Taking the best of DeFi and TradFi with IPOR.
0:57:27 - Who are the first IPOR users and liquidity providers?
1:02:48 - How are money markets added to the IPOR Protocol?
1:05:10 - Covering basis risk with IPOR indices.
1:05:45 - The IPOR benchmark as a bet on credit markets as a whole.
1:07:27 - Will the IPOR exist on other chains?
1:12:10 - What’s next for IPOR (collaborations with other projects).
You can find our guests and hosts on Twitter @DarrenCamas, @DimitarDinev7, @0xKepler and @cryptobrucey
Legal disclaimer: Nothing on our show constitutes financial advice. We only offer our opinions and thoughts on this brand new industry.
