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How do IPOR derivatives work?

IPOR fixes borrowing rates using an interest rate swap with the liquidity pool as contract counterparty

Step 1

Quote IPOR Index

Step 2

Contract Pricing by AMM

Step 3

Opening the Contract

Determine whether you want to pay fixed or pay floating rate based on the current IPOR rate.

The Automated Market Maker (AMM) determines the price of opening a contract by assessing the current IPOR rate, all open contracts, historical data, and the size of the contract.

The AMM will present all the necessary information including the rate, the fees, and the contract size. The liquidity pool acts as the contract counterpart and you can choose to open a contract.

By the Numbers

DeFi Market




TVL growth from 2020 to 2021

Interest Rate Derivatives Market


dollar market, nearly
$450 Trillion notional


of the global derivatives market value

The Inter-protocol Offered Rate

Also known as the IPOR, is a benchmark index constructed in real-time from top DeFi lending protocols’ smart contracts to provide a transparent overview of the risk free rate.

IPOR Interest Rate Swaps

IPOR Interest Rate Swaps are an adapted derivative instrument built specifically for DeFi market participants.


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How to get involved

The IPOR DAO will govern the protocol giving the community the ability to make updates to the protocol, make decisions on construction of the index, launch new products, and more.


The IPOR Index and IPOR Derivatives products are initially being developed by IPOR Labs, a Zug based firm specializing in derivatives software products.

IPOR Labs was founded by veterans in financial markets, cryptocurrency, and blockchain expertise spanning protocol development, fixed income derivatives, quantitative finance, exchange trading systems, venture capital, and software development.

Copyright © 2021 IPOR Labs AG