Rho Brings Interest Rate Derivatives to DeFi on Arbitrum, One Swap at a Time

Rho introduces fixed-for-floating interest rate swaps to decentralized finance (DeFi), replicating a key traditional finance instrument within the crypto ecosystem. Built on Arbitrum, Rho enables users to hedge risk, manage cost volatility, and speculate on crypto-native interest rates such as staking yields and perpetual futures funding. Arbitrum’s low-cost, high-throughput Layer 2 architecture offers the scalability Rho needs to support this complex financial primitive, helping it attract meaningful notional trading volume. This innovation addresses a crucial gap in DeFi infrastructure by providing structured tools for rate risk management and strategic asset positioning.

Read the whole article at: blog.arbitrum.io