"The Rise of Term-Based Bond Markets and the Unwavering Commitment of Secured Finance"
In 2025, the massive influx of traditional assets - especially stocks and bonds - into the blockchain will make history. In a recent Bloomberg live broadcast, BlackRock CEO Larry Fink stated that the tokenization of stocks and bonds will gradually integrate into the on-chain ecosystem, further activating the market. At Secured Finance, we are committed to seizing this opportunity by providing innovative "term-based fixed-rate" on-chain solutions. We firmly believe that this field will play an increasingly critical role in the DeFi world.
1. Surge in On-Chain US Dollar Liquidity
To date, the DeFi ecosystem has primarily revolved around short-term variable-rate lending (such as Aave, Compound) and liquidity pools (such as Uniswap). However, new stablecoins are now accelerating their development, and assets pegged to the US dollar are expected to flood the blockchain on an unprecedented scale.
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USDC, USDT, and DAI still dominate, but more US dollar-pegged assets are emerging.
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Our launched USDFC (a FIL-backed stablecoin) will provide dedicated liquidity support for the Filecoin ecosystem.
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The influx of on-chain US dollar liquidity will inevitably seek diversified ways to generate returns, creating a huge demand for stable returns.
1.1 From Retail to Institutions: Upgrading the Capital Structure
The early adopters of DeFi were mainly retail investors chasing short-term returns, but now institutional investors are entering the market in droves:
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They need low-volatility, stable-yield products that fit their risk management processes.
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The tokenization of off-chain bonds is particularly noteworthy. Bonds naturally have a term structure and the stable-yield attributes preferred by institutions.
2. Why Term-Based Fixed-Rate Lending is Needed
2.1 For Retail: More Predictable Yield Options
Protocols like Aave/Compound excel at flexible short-term lending, but their floating rates can be highly volatile. For long-term holders or conservative users, this uncertainty is unacceptable:
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Traditional bonds (fixed-rate + fixed-term) are widely popular in the off-chain market because they can provide stable and predictable returns.
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Existing DeFi fixed-rate solutions have a clunky user experience: issues like reinvestment operations, manual extensions, or exit fees hinder user adoption.
2.2 For Institutions: ALM and Bond Demand
The demand is more urgent for institutions:
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Asset-Liability Management (ALM): They need to balance the cash flow of liabilities and the yield of assets through term matching.
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Bond Investors: They need to bridge the on-chain US Treasury/corporate bond yields with DeFi yields to achieve hedging and arbitrage.
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In short, institutions require term structure and fixed rates to achieve efficient operations - something that short-term floating rates cannot satisfy.
3. Real-World Assets (RWA) Accelerating On-Chain
RWA tokenization refers to bringing off-chain assets like stocks, real estate, or bonds onto public chains. As more bond assets move on-chain, the concept of term will deeply penetrate DeFi:
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The current DeFi ecosystem mainly relies on floating-rate liquidity pools.
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Once tokenized bonds (with defined terms) become widespread, risk management based on the yield curve will become a fundamental need.
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RWA can also use income-generating assets as collateral: borrowing stablecoins on-chain through term-matched lending protocols, activating massive liquidity pools. As institutional capital accelerates on-chain, the fixed-income and bond-like markets may experience explosive growth - possibly even triggering a DeFi Summer 2.0.
4. Secured Finance 2025 Roadmap
4.1 Q1: Launch USDFC (FIL-Backed Stablecoin)
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Build a stablecoin based on the Filecoin ecosystem, providing reliable on-chain liquidity support for the FIL community.
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Promote the integration of USDFC into mainstream DeFi protocols, laying the foundation for advanced fixed-income products.
4.2 Q2-Q3: Develop New Fixed-Rate AMM Pools
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Build an AMM-driven fixed-rate solution on top of the existing order book-based fixed-lending market.
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Launch Constant Maturity (CM) Pools, disclosing their technical architecture and economic model in a whitepaper.
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Aim to achieve a user experience similar to Aave/Compound (convenient deposit and withdrawal), but with an underlying bond-like yield and term structure.
4.3 Full Launch by Year-End
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Users can deposit liquidity and earn predictable rates (like holding bonds), while enjoying the flexibility of AMMs.
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Build an on-chain environment for institutions: simulate the bond rolling yield effect, support yield curve risk management.
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By the end of 2025, aim to achieve seamless integration of retail and institutional capital into the fixed-income ecosystem.
5. Vision for the On-Chain Bond Market
In 2025, as Larry Fink mentioned, the tokenization of traditional assets, especially bonds, may become the new normal. Secured Finance envisions the following evolution chain:
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US Dollar Tsunami: Exponential growth of multi-issuer stablecoins;
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Institutional Influx: Breaking traditional shackles, large capital flows into the on-chain market;
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Term Demand: Thirst for stable long-term yields, driving term-based risk management;
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RWA Tokenization: Native on-chain bonds and Treasuries, providing real yields;
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CM Pools: Becoming the "bond-like AMM" platform connecting the new and old financial worlds.
If these elements resonate, we may witness a DeFi Summer 2.0 driven by the on-chain bond market.
6. Secured Finance's Unique Advantages
We have built an order book-based fixed-lending protocol and are about to launch USDFC. With the development of CM Pools, Secured Finance is poised to become a core driver of the on-chain bond revolution:
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For Retail: Provide Aave-like simple deposit and withdrawal operations, but with bond-like stable returns;
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For Institutions: Achieve term-based asset-liability management (ALM), bridging the real bond market and DeFi;
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For RWA: Build a robust market for tokenized bonds, forming a complete fixed-income ecosystem.
Conclusion
In 2025, DeFi will transition from the era of short-term floating rates to a mature fixed-rate ecosystem driven by stablecoins, RWA tokenization, and institutional demand. Secured Finance's mission is to lead this transformation, through the following milestones:
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USDFC stablecoin launch (Q1)
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Fixed-income AMM based on liquidity pools and whitepaper release (Q2-Q3)
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Protocol launch and continuous growth (by year-end)
We invite you to join us in building a safer and more predictable DeFi future, and ushering in a new era of on-chain fixed income.
About Secured Finance
Secured Finance is a leading blockchain-based financial services company, dedicated to building advanced financial tools for the decentralized economy. Secured Finance focuses on innovation and security, aiming to connect traditional finance and decentralized finance, empowering global users, with details as follows:
Official Telegram (Chinese): https://t.me/SFCommunityCN
Official Channel (Chinese): https://t.me/SFNewsCN
Twitter/X: @Secured_Fi
