Zero Hedge talking about the interbank lending rate:
“The rate hasn’t climbed above 1% since prior to the financial crisis. Most corporate loans have so-called Libor floors, so the loans wouldn’t reset higher until the 1% mark had been breached. Now that it has, with each rate hike, companies will owe more on their loans. […] And there are a lot more very leveraged companies now than there were even a few years ago.
We don't compound, we re-quantize.
Duration risk is fine, in the smart contract layer. Sandbox doesn't bet time, as the thumb prints all get deju vu on the second rollover, and go giddy. It is a moral hazard because pure cash has no observable supply chain. Deja vu implies a supply chain so the S&L extinguishes deju vu with amortization.
Betting time in smart contracts
You are serving a customer who wants his asynchronous interest charges replaced by time synchronous payments. So your time company bets the ledger points. It will track the current ledgers, make sure ownership is thing spec such that the un-measurable float ot there is within the risk profile. So, registered ownership plus currency float is mostly less than time synchronous income.
It is a useful service, but you are dealing directly with time plotters. My recommendation is to bet the seasonal adjuster, which at least is time synched nauarally.