In the Primary Markets, lenders can place an order to lend a certain amount at the interest rate of their choice, provided that the amount is above the minimum requirement. According to the rules, the orders are sorted by the interest rate in the same auction round for the same underlying borrowed token. The orders with lower interest rates will have higher priority. This ensures that lenders who are willing to lend at lower rates are given preference over those who are demanding higher rates. The resulting interest rate for the matching will be better than or equal to the lender's expectation, ensuring that lenders are able to access competitive rates that align with their preferences.

For example, if Bob is willing to lend at an interest rate of 5% APR, he may end up receiving an interest rate of 7% or higher after the auction, depending on the market interest rates and the available borrower orders at that time. Lenders who place their orders with lower acceptable interest rates have a better chance of being matched, compared to lenders who demand higher rates. This encourages lenders to offer competitive rates in order to maximize their chances of finding a good match.

After the auction, lenders, whose orders are matched successfully, will be able to lend to borrowers at a fixed term and fixed interest rate. They will automatically receive tTokens as fixed-income tokens, which allow the lenders to redeem the principal plus interest at a 1:1 ratio for the underlying tokens after the maturity date. This redemption function will be available at 00:00 UTC+0 on the maturity date. Fixed-income tokens can be traded in the Secondary Markets or be used as collateral in the Repo Markets before the maturity date, allowing lenders to generate additional returns or access additional liquidity as needed.

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