Fixed-rate lending remains a challenge in decentralized finance (DeFi) due to the lack of persistent borrower demand for rate certainty. While fixed rates dominate private credit sectors for their predictability, DeFi borrowers often prioritize liquidity and flexibility, making floating rates more appealing. Lenders prefer floating rates to protect profit margins and capture gains when benchmark rates rise, whereas fixed rates are typically offered only when lenders can hedge risks or charge a premium. In DeFi, platforms like Aave and Morpho see borrowers using over-collateralized loans to maintain liquidity without selling assets, rather than for speculative trading. Although there is some institutional demand for fixed rates, the market struggles to scale due to liquidity constraints and high interest premiums. For instance, Maple Finance offers fixed-rate loans with premiums of 180-450 basis points over floating rates, but liquidity issues and high costs deter broader adoption. To address these challenges, the DeFi sector may need to innovate beyond traditional point-to-point matching of fixed-rate borrowers and lenders. Interest rate swaps and leveraging the security of established protocols like Aave could provide a path forward, allowing for more efficient capital deployment and potentially reducing the premium on fixed-rate loans.