How It Works
Fira is a fixed-rate lending protocol. Borrowers lock a rate for a defined period. Lenders earn predictable yield through Bond Tokens (BTs). Every position has a maturity date and a rate set at origination.
The Core Loop
Deposit collateral — A borrower deposits an accepted collateral asset into a Fira market.
Borrow at a fixed rate — The protocol mints Bond Tokens (BTs) and Coupon Tokens (CTs). The borrower receives the loan token. The rate is locked.
Maturity — At the end of the term, BTs redeem 1:1. The borrower repays principal + accrued fee. The lender receives their principal back.
This loop runs the same way in every Fira market. The collateral, loan token, rate, and maturity change — the structure does not.
Fixed Rates vs. Floating Rates
Rate
Changes every block based on utilization
Fixed at origination for the full term
Term
Open-ended — no maturity
Defined maturity date
Predictability
None — rates can spike 10x in a day
Full — cost and yield known at entry
Position tokens
Vault/Market Tokens
BT (principal) + CT (yield) — composable, tradable
Key Concepts
Bond Token (BT)
Represents a claim on principal at maturity. Analogous to a zero-coupon bond. Trades at a discount before maturity and redeems 1:1 at term.
Coupon Token (CT)
Represents the yield portion of a lending position. Accrues interest over time. Can be sold early for upfront yield or held to maturity.
FiraWrapped (FW)
Wrapped yield-bearing tokens that standardize different collateral assets for use in Fira markets. FW tokens make any yield-bearing asset compatible with Fira's lending infrastructure.
Markets
Each Fira market is an independent instance defined by a collateral asset, a loan asset, and a set of parameters (LTV, oracle, fee, maturity).
For Different Users
Borrowers borrow at a known cost. No surprise rate hikes. The total cost of the loan is visible before execution.
Lenders earn predictable yield by purchasing BTs at a discount. The return is set at purchase — not subject to utilization changes.
LPs provide liquidity to the rate discovery AMM and earn trading fees plus rehypothecation yield.
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