CoinDesk Indices and Sentora announce the launch of new interest rates called CoinDesk Overnight Rates (CDOR), which will utilize Aave's liquidity to regulate lending rates and assist in hedging and securing yields for stablecoins.
What is CDOR?
CDOR is a new benchmark interest rate based on Aave's lending pools that will provide standardized overnight rates for major stablecoins. These rates will be calculated and published daily for use by exchanges and other financial institutions.
Supporting Industry Growth
CDOR rates are designed to support markets for hedging funding costs and developing currency rate strategies. Aave's founder, Stani Kulechov, stated that CDOR will provide a transparent and secure lending rate, unlocking new analytical possibilities for stablecoins.
How CDOR Affects the Stablecoin Market?
CDOR rates will create opportunities for trading and hedging, potentially leading to a significant increase in institutional investor interest in DeFi. Currently, futures contracts based on these rates are under development.
The launch of CDOR is an important step towards integrating traditional finance with DeFi, providing new tools for risk management and strategies for a broader range of market participants.
