Disclaimer: The Tinkering Society helped ideate and develop Size.
We’re excited to see Size v1 live on Base after over a year of research and development by Size contributors.
As far as we know, it is the first fixed rate lending protocol to unify liquidity across all loan terms/maturities, paving the way for deeper fixed rate liquidity and some innovative use cases.
Let’s take a quick look at how it works and it can make a splash.
Under the surface, Size is built on a novel P2P order book system where every lending offer is structured as a yield curve.
Offers are automatically aggregated by the Size app so that borrowers can access deep liquidity across the order book.
A challenge for fixed rate lending protocols has been fractured liquidity across maturity buckets. For example, lenders (or LPs) might deposit to the March 31 maturity pool, or the Dec 31 pool, but this results in shallow liquidity as funds are siloed across different pools.
Size aggregates all liquidity across the full term/maturity spectrum, allowing for any loan term and deep liquidity.
Borrowers have, until now, had to choose a maturity from a small selection of dates. This means that the loan almost always has a term that doesn’t exactly fit what the borrower is looking for.
With Size, borrowers can pick the exact day (or even hour) that they would like to pay back their loan.
No more random dates. It’s time to let the borrower choose what they want.
When lenders deposit to Size, their funds immediately start earning a variable rate via Aave.
At the same time, the lender defines a custom yield curve that dictates how much they are willing to lend at for every loan term.
When a borrower is matched with the lender, they stop earning the variable rate (for the amount matched) and begin earning their preferred custom rate for the matched term.
Visit size.cash to check out v1 and let us know what you think. v1 is limited to a $50k borrow cap, and a friendly reminder to only deposit what you’re willing to lose as this is an unaudited beta.
Size v2 is under development with some exciting features, so stay tuned and give Size a follow on X.
Collect this post as an NFT.