--- title: "P2P Fixed-Rate Lending (Stokenet)" path: "/ecosystem/p2p-lending" version: "1.0.0" author: "Hydrate" createdAt: "2026-03-19T11:12:51.915Z" updatedAt: "2026-03-19T11:12:51.915Z" --- # P2P Fixed-Rate Lending (Stokenet) | **Status** | Testnet (Stokenet) | | **Type** | DeFi — Peer-to-Peer Lending | | **Rate model** | Fixed interest rate (no variable rate risk) | | **Liquidation** | None for fixed-rate positions | | **Key technology** | Radix sub-intents (composable transactions) | | **Language** | Scrypto | | **Related** | [Cuttlefish](/contents/tech/releases/cuttlefish), [Scrypto](/developers/scrypto) | ## Overview A peer-to-peer fixed-rate lending dApp in development on Stokenet (Radix's public testnet) demonstrates a trustless lend-and-borrow protocol where both parties agree to fixed interest rates before the loan is initiated. Unlike liquidity pool-based lending (Aave, Compound), where interest rates float with utilization, this protocol locks in rates at loan creation — eliminating variable rate risk for borrowers and lenders alike. The dApp is built using [Radix sub-intents](/contents/tech/releases/cuttlefish), the composable transaction feature introduced in the Cuttlefish upgrade (December 2024). Sub-intents allow each party in a multi-party transaction to sign their own portion independently, with a final assembler combining them into a single atomic transaction. This enables trustless loan initiation without a central escrow contract holding funds during the matching process. ## How It Works **For lenders:** A lender creates a loan offer specifying the asset, amount, interest rate, and duration. This offer is encoded as a sub-intent — a signed partial transaction that commits the lender's funds conditionally. The offer can be broadcast or matched off-chain without the funds leaving the lender's control until a borrower accepts. **For borrowers:** A borrower finds an acceptable offer, creates their own sub-intent (committing collateral), and an assembler combines both sub-intents into a complete atomic transaction. The loan is created, collateral locked, and principal transferred in a single Radix transaction. There is no window for front-running, rug pulls, or partial execution. **Repayment:** Fixed-rate positions have predetermined repayment schedules. Because the interest rate is fixed at loan creation, borrowers know their total repayment obligation from the start — no oracle risk, no utilization-rate spikes, no surprise rate increases. ## No Liquidation Risk Traditional DeFi lending (Aave, Compound, MakerDAO) uses over-collateralization with liquidation mechanisms: if collateral value falls below the liquidation threshold, bots sell the collateral at a discount to repay the loan. In volatile markets, borrowers can be liquidated even during temporary price dips — losing their collateral despite intending to repay. Fixed-rate P2P lending separates the interest rate from the collateral ratio. A borrower who commits collateral at loan creation and makes scheduled repayments cannot be liquidated due to price volatility — the terms are fixed. This is particularly valuable for longer-duration loans where variable rate and liquidation risk compound over time. The tradeoff is reduced capital efficiency compared to over-collateralized pool-based protocols. Lenders must wait for matched borrowers rather than earning yield from an always-available liquidity pool. ## Sub-Intent Technology The protocol's non-custodial matching mechanism is enabled by Radix's [sub-intent (pre-authorization) system](https://docs.radixdlt.com/docs/pre-authorizations-and-subintents), introduced in the Cuttlefish upgrade. Sub-intents allow a party to sign a partial transaction with specific preconditions and assurance properties, without broadcasting or finalizing it. Key properties used by this dApp: - **Conditional execution:** The lender's sub-intent only executes if the borrower's matching sub-intent is included in the final transaction - **Assertions:** The lender can assert minimum collateral ratios or specific asset types in the borrower's sub-intent - **Atomic assembly:** The final transaction either fully executes both sub-intents or fully reverts — no partial state - **No custodian needed:** Funds never leave participants' vaults until the matched transaction is finalized This is a direct application of [Radix's composability primitives](/contents/tech/core-concepts/radix-for-ai-agents) to DeFi primitives that previously required trusted escrow contracts or custodial order books. ## Stokenet and Mainnet Path The dApp is currently on [Stokenet](https://stokenet-dashboard.radixdlt.com/), Radix's public testnet, where it can be tested with testnet XRD without real financial risk. The development team is building toward a mainnet launch. Stokenet now operates as community infrastructure following the [Stokenet Goes Community handover](/contents/history/stokenet-goes-community), meaning external developers building on Stokenet are operating on independently maintained testnet infrastructure — closer to mainnet conditions than previous Foundation-operated testnet environments. ## External Links - [Pre-Authorizations and Subintents — Radix Docs](https://docs.radixdlt.com/docs/pre-authorizations-and-subintents) - [Stokenet Dashboard — Radix](https://stokenet-dashboard.radixdlt.com/) - [Cuttlefish Upgrade (December 2024)](/contents/tech/releases/cuttlefish) - [Scrypto — Asset-Oriented Smart Contracts](/developers/scrypto)