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Most DeFi lending platforms only provide users with a fixed interest rate, but on Aave, people can choose between a fixed interest rate and a variable interest rate. Users can use the swap interest rate function to change between these interest rates, which adds a unique layer of flexibility to borrowing and lending using the DeFi protocol. In addition, you can even take a 10 times leveraged position in the transaction, which essentially creates a derivative market for interest rate swaps.
Credit commission
Recently, Aave pioneered the launch of credit delegation as a new feature on the platform. This allows users to set a credit limit as a form of peer-to-peer lending that other users can withdraw. The principal sets the terms, such as how much funds can be withdrawn, what the interest rate is, and what are the repayment terms.
Stani Kulechov, founder of Aave, said on Twitter that credit entrustment expands DeFi from deposit capital to source capital and to the global financial debt market, making it the backbone of global finance.