Swivel Finance developed and deployed a decentralized finance (DeFi) protocol that allowed users to engage in fixed-yield lending and trade interest rates. The protocol worked by splitting yield-bearing tokens (like cTokens from Compound) into two separate components: a zero-coupon bond equivalent (nTokens) and the underlying yield-bearing asset (ytTokens). This allowed lenders to lock in a guaranteed fixed interest rate, while speculators and arbitrageurs could trade on the future direction of variable yields. The project aimed to bring the sophistication of traditional interest-rate derivatives to the DeFi ecosystem. However, in May 2023, the team announced they were sunsetting the project and would no longer maintain the user interface or related infrastructure.

Founded in

United States