IRIS Plans Nov. 10 Fixed-Rate Borrowing Launch Using SparkLend

IRIS plans to launch fixed-rate borrowing on Nov. 10 using SparkLend liquidity, giving users a set borrowing cost while the underlying loan draws on a floating-rate lending market.

IRIS announced the planned start at 8 a.m. ET (13:00 UTC) on Nov. 9, and Spark separately confirmed the integration. SparkLend is one of several lending venues listed for the service.

Borrowers specify their collateral, loan asset, amount, term and the highest fixed annual percentage yield they will accept. Solvers then provide quotes backed by their own capital. IRIS offers terms of up to 90 days.

The loan continues to incur a floating borrowing cost at the lending venue. When that cost rises above the borrower’s agreed fixed rate, a solver’s bond covers the difference. This arrangement uses liquidity already held by lending venues to support fixed-rate terms.

The fixed rate depends on that backing. If a solver’s bond runs out, the borrower’s rate switches to the lending venue’s floating rate. Collateral also remains subject to the venue’s liquidation rules. A borrower who repays early still owes interest for the full agreed term.

IRIS lists six borrowing pairs on Ethereum. All six are available through SparkLend or Aave V3, and five are also available through Morpho Blue. The number of available quotes will depend on solvers providing them and committing capital to back the rates.

The planned service joins other efforts to give decentralized finance borrowers more predictable costs, including Aave’s separate fixed-rate lending option. IRIS plans to open borrowing on Nov. 10.