CoinDesk Overnight Rates (CDOR) is a benchmark interest rate that draws upon Aave’s lending pools to provide standardized overnight rates for major stablecoins.
CoinDesk Indices, in collaboration with Sentora have launched these first-of-kind money market rates to transform Aave pool activity into conventional overnight rates to support interest rate derivatives and floating rate loans.
CDOR rates are designed to support markets for hedging funding costs, securing yields, and developing cross-currency rate strategies. Calculated and published daily, these rates are accessible to exchanges, market makers, protocol treasuries, and structured-product desks.
The first CDOR rates utilize activity on Aave v3’s Core variable borrow pools for USDC and USDT. CoinDesk Indices has released a methodology that converts this on-chain activity into a historical daily (or “overnight”) rate that can be aggregated over longer periods. These pools, whose rates react instantly to changes to supply and demand, are important facilities in decentralized finance that reflect activity of a large population of borrowers and lenders.
By turning on-chain market activity into standardized interest rates, CDOR lays the groundwork for exchange-traded money-market futures and other rate-based derivatives.
Click here to see the CoinDesk Aave USDT Overnight Rate.
