Kairos Aims to Bring $500T Swap Market Onchain with $2.4M Funding

Kairos Labs, Inc. has secured $2.4 million in funding to develop its permissionless interest rate swap protocol for DeFi. The company's technical whitepaper details how its protocol will enable lenders to offer fixed rates by hedging their floating-rate exposure.

The protocol is expected to launch on the Ethereum mainnet and Base in the coming weeks, with additional chain deployments to follow. It aims to address a significant gap in DeFi lending infrastructure, where virtually all loans carry variable rates that can swing dramatically based on utilization and market conditions.

Kairos enables anyone to create an interest rate swap market by specifying a set of immutable parameters. This allows liquidity providers to allocate based on their directional view and risk tolerance. The protocol supports any rate, for lenders or borrowers, so fixed-rate lending on Morpho, structured yield products, and entirely new fixed-income instruments are all made possible.