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CoinDesk Indices, a provider of digital asset benchmarks, has partnered with Sentora, a company specialising in institutional decentralised finance (DeFi) solutions, to launch the CoinDesk Overnight Rates (CDOR). This new suite of benchmark interest rates is the first to use activity from Aave’s lending pools to produce standardised overnight rates for major stablecoins.
CDOR rates are intended to underpin markets for hedging funding costs, securing yields, and enabling cross-currency rate strategies. The rates are calculated and published daily, making them accessible to exchanges, market makers, protocol treasuries, and structured product desks.
Stani Kulechov, Founder of Aave Labs
Stani Kulechov, Founder of Aave Labs, said, “CDOR is a new benchmark interest rate built on Aave’s deep onchain liquidity. It provides a transparent, risk-free lending rate that unlocks new use cases for stablecoins, such as derivatives and fixed-income products, enabling more efficient, scalable, and automated financial markets.”
The initial CDOR rates are derived from Aave v3’s Core variable borrow pools for USDC and USDT. CoinDesk Indices has released a methodology that translates this on-chain activity into a historical daily, or ‘overnight’, rate, which can be aggregated over longer periods. These pools are central to decentralised finance, as their rates respond instantly to supply and demand, reflecting the activity of a broad base of borrowers and lenders.
Andy Baehr, CFA, Head of Product and Research at CoinDesk Indices
Andy Baehr, CFA, Head of Product and Research at CoinDesk Indices, commented, “Stablecoins are expected to grow into the trillions, but there is no institutional-grade money market for trading and hedging term rates. CDOR rates provide a cornerstone element for the stablecoin rates markets, using the same conventions as TradFi benchmarks, which support the largest derivatives markets in the world.”
Anthony DeMartino, CEO of Sentora
Anthony DeMartino, CEO of Sentora, added, “Sentora’s mission is to make on-chain finance as efficient as traditional finance. With CDOR rates you can switch from floating to fixed funding, or speculate on the curve, in a single, capital-efficient trade; a crucial building block that’s been missing for years. These rates will enable new DeFi use cases and Sentora is happy to support the evolution of capital markets on-chain.”
Exchange-traded futures contracts, currently in development, are set to settle against CDOR rates, providing new tools for risk management and strategy implementation. Galaxy, FalconX, Flowdesk, and Tyr Capital will serve as founding market makers.
Ed Hindi, CIO of Tyr Capital
Ed Hindi, CIO of Tyr Capital, remarked, “CDOR rates enable the creation of a broad range of financial derivatives that are currently missing in the crypto financial ecosystem. This addition alongside a clearer regulatory environment should exponentially increase the interaction of institutional players with DeFi. The ability to efficiently manage interest rate risk is a game changer for the CeDeFi markets. Tyr Capital is thrilled to be more widely involved in making the TradFi and crypto relationship more symbiotic.”
Jason Urban, Global Head of Trading at Galaxy
Jason Urban, Global Head of Trading at Galaxy, said, “With CDOR rates, the market gains a powerful rate signal that reflects real-time borrower demand and enables smart, scalable trading strategies. It’s a meaningful step in bridging DeFi and traditional finance, making stablecoin markets more accessible and actionable for sophisticated investors.”
Joshua Lim, Global Co-Head of Markets at FalconX
Joshua Lim, Global Co-Head of Markets at FalconX, stated, “We are pleased to partner with CoinDesk Indices and Sentora on their CDOR product suite. The next phase of growth in crypto will be driven by convergence of CeFi and DeFi capital markets.”
Reed Werbitt, US CEO of Flowdesk
Reed Werbitt, US CEO of Flowdesk, commented, “The introduction of CDOR will enable broader institutional adoption and participation in crypto credit markets, enhancing capital efficiency and risk management across our trading strategies. The ability to mitigate interest rate risk is a critical foundation of a functioning capital market, and we’re excited to be working with Sentora to bring this product to fruition.”
By transforming on-chain market activity into standardised interest rates, CDOR is laying the foundation for exchange-traded money market futures and other rate-based derivatives.
