IRIS borrowers can choose a fixed rate for 1–90 days, with another party putting up capital to absorb changes in the underlying lending cost.
The loan still draws on a floating-rate market such as Spark. A market maker called a solver quotes the fixed rate and backs that particular loan with a bond. When the market charges less, the solver keeps the difference. When it charges more, the difference comes out of the solver’s bond.
That backing has a limit. IRIS’s documentation says that if accumulated costs eat far enough into the bond, it can be liquidated. The borrower then takes over the market’s floating rate. This event does not itself take the borrower’s collateral; ordinary collateral-liquidation risk remains separate.
For someone choosing how long to fix a borrowing cost, the term matters too: repaying early still incurs the full term’s interest. A longer quote commits to a longer interest bill, rather than buying a free option to leave early.
Sources: IRIS’s current product page and borrowing documentation, checked November 11, 2026. Diagram shows the documented mechanism, not a live loan or quoted rates.
https://iris.credit/
https://docs.iris.credit/home/user-guide/borrowing
https://docs.iris.credit/home/user-guide/solver-backing
#DeFi #Crypto
The loan still draws on a floating-rate market such as Spark. A market maker called a solver quotes the fixed rate and backs that particular loan with a bond. When the market charges less, the solver keeps the difference. When it charges more, the difference comes out of the solver’s bond.
That backing has a limit. IRIS’s documentation says that if accumulated costs eat far enough into the bond, it can be liquidated. The borrower then takes over the market’s floating rate. This event does not itself take the borrower’s collateral; ordinary collateral-liquidation risk remains separate.
For someone choosing how long to fix a borrowing cost, the term matters too: repaying early still incurs the full term’s interest. A longer quote commits to a longer interest bill, rather than buying a free option to leave early.
Sources: IRIS’s current product page and borrowing documentation, checked November 11, 2026. Diagram shows the documented mechanism, not a live loan or quoted rates.
https://iris.credit/
https://docs.iris.credit/home/user-guide/borrowing
https://docs.iris.credit/home/user-guide/solver-backing
#DeFi #Crypto
