A passive liquidity provider could deposit Loan Tokens across an interest rate range to earn interest and fees over time. As users borrow and lend in the pool, the LP will earn a blend of the variable rate and the fixed rate plus a share of trading fees.
A market maker could deposit 100 USDC to lend in the 10% tick, mint 1000 fixed USDC tokens(keeping the 1000 fixed debt in the portfolio) and create a borrow limit order with the 1000 fUSDC at the 0% tick. If pre-existing borrowers want to exit their borrow positions they can do so by exchanging USDC for fUSDC at the 0% tick. Allowing the market maker to effectively borrow with leverage at 0% fixed and earn at the underlying money market rate until maturity.
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