IPOR is a DeFi protocol made up of smart contracts that generate a benchmark interest rate and let users trade Interest Rates Derivatives on the Ethereum blockchain. It brings this together using three core components: the IPOR Index, the IPOR AMM and liquidity pools, and Asset Management smart contracts.

IPOR stands for Inter Protocol Over-block Rate. The name is taken from well-known traditional finance benchmarks such as LIBOR - the London Interbank Offered Rate, and SOFR - Secured Overnight Financing Rate, then translated for use in DeFi. IPOR is a mid-market rate (not offered) that is produced block-over-block, making it the nearest possible stand-in for real-time availability on-chain.

The IPOR Protocol is built on the idea that in a decentralized finance sandbox, credit can act as the catalyst. To help DeFi credit markets grow into the fixed-income markets of the future, they need the same risk management capabilities that traditional financial (TradFi) organizations rely on. IPOR provides these through IPOR indices and interest rate derivates like swaps tied to the index. By using interest rate derivatives, fixed-income participants can stabilize returns and manage interest rate risk.

IPOR’s goal is to serve as the base layer for DeFi credit markets. The IPOR indices are calculated and published on-chain, functioning as a public good that anyone can reference and build on. Their methodology is transparent, public, and auditable. In parallel, interest rate swaps that reference the IPOR can contribute to bootstrapping the DeFi yield curve, which is a requirement for liquid and more mature financial markets. Together, the Index and Derivatives give other builders building blocks for more advanced financial products.