Peter Gaffney of O2O Capital Partners argues that onchain borrowing against real-world assets needs fixed-rate, fixed-term lending. The excerpt says real-world assets already back the largest stablecoins, but borrowing against them onchain still uses variable-rate pools. Gaffney estimates that a 5% shift in Sky and Ethena reserves could create $1.8 billion in demand for real-world assets; it does not report that the shift has occurred.
