Analysis compares how Pendle, Morpho Midnight, Term and Kamino set fixed rates and handle bad debt

The analysis argues every fixed-rate DeFi lender holds the same instrument: a zero-coupon bond. Pendle, Morpho Midnight, Term and Kamino differ only in who sets the rate, who absorbs defaults, and who holds the bond pre-maturity. Rate-setting ranges from Pendle's AMM to Term's weekly uniform-price auction; loss recognition varies from Midnight's immediate booking to Kamino's governance-triggered socialization. Midnight fees are capped at 0.5% settlement and 1% yearly; Kamino rides an existing $2.5B market. Growth is expected in receivable-backed credit like Kamino's AUTO markets.

✨ AI summary of the linked source — not editorial content.

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• Pendle
• Bad Debt
• Morpho