The Rate Renaissance: How Benchmark Rates Unlock DeFi’s Potential

Description

Benchmark rates have long been a cornerstone of traditional finance (TradFi), underpinning trillions in financial instruments. Benchmarks like LIBOR and SOFR play a crucial role in determining lending and borrowing costs. However, these benchmarks have faced criticism for their centralization and vulnerability to manipulation. Notably, in June 2012, Barclays admitted to manipulating LIBOR, resulting in a $450 million settlement with U.S. and U.K. regulators. Although SOFR, as an overnight rate, ...