BNB Chain From the Mouse's Playground to the Market of the People - Fixed Interest Rates Are the Key

In recent weeks, the explosion of meme coins and the impressive performance of BNB Chain after the Fermi upgrade have attracted the attention of the entire crypto community. Retail investors are excited about the potential for quick profits, but the question remains: can a complete ecosystem be built solely from low gas fees and a surge in user numbers?

Fermi Upgrade Focuses Retail Investors on BNB Chain

The Fermi upgrade has delivered remarkable results for BNB Chain. Total Value Locked (TVL) has skyrocketed, daily user traffic has increased significantly, all thanks to low fee mechanisms and high transaction processing capabilities. This has made BNB Chain an “ideal playground” for retail investors—those who typically seek quick profits with small capital.

However, this rapid growth masks significant vulnerabilities within the DeFi ecosystem. New project developers can easily build on BNB Chain, but lack advanced DeFi tools to truly meet market needs.

Variable Interest Rates - The Fear of Both Retail and Institutional Investors

The main issue lies in the fact that most lending protocols on BNB Chain use variable interest rates—interest rates that can fluctuate sharply with market volatility. For retail investors, this creates uncertainty about how much borrowing costs will increase. For small lenders, their profits are also unpredictable.

But the bigger problem is here: institutional capital—large investment funds, serious financial organizations—will never commit huge amounts of money to an ecosystem where costs and profits are unpredictable. This is the context in which TermMaxFi recently published an article titled “Why BNB Chain Needs Fixed Risks and Structured Products”—a deep analysis of what the ecosystem is missing.

Why BNB Chain Needs Fixed Interest Rates to Enter the Third Stage

Fixed interest rates provide the stability that institutional investors require. With fixed rates, a borrower knows exactly how much they will pay, and a lender knows exactly how much they will earn. This enables predictable financial planning, reduces risks, and builds trust.

Furthermore, advanced structured products—such as one-click looping strategies or leveraged tools—offer users sophisticated ways to optimize profits. These tools not only serve retail investors but also enable institutional funds to use tokenized assets as collateral, opening a new horizon for DeFi.

The maturation of an ecosystem occurs in clear stages. The first stage focuses on attracting users with low fees and fast transactions. The second stage is when TVL suddenly surges—that’s exactly where BNB Chain is now. The third stage, with all its challenges, requires fixed risk tools to attract real capital—institutional funds—and turn DeFi into a genuine part of mainstream finance.

Pendle and Morpho on Ethereum - Lessons for BNB Chain

Ethereum has proven that this model works. Pendle—a protocol that allows interest yield to be separated from principal—and Morpho—a fixed-rate lending marketplace—have built successful ecosystems on Ethereum. These tools serve not only regular retail investors but also open the door for institutional funds.

With lower fees, faster processing, and a huge potential customer base, BNB Chain can certainly become the new hub for fixed interest rates. This will enhance liquidity, market depth, and pricing, creating a DeFi ecosystem that can truly compete with Ethereum.

2026: The Year of Fixed Interest Rates on BNB Chain?

We are nearing the end of the second stage of BNB Chain’s ecosystem maturity. The third stage—when fixed risk tools explode and institutional capital flows in—may be imminent. The question the community is debating is: will 2026 be the year fixed interest rates become the next big story on BNB Chain?

The difference between retail and institutional investors will determine the ecosystem’s direction. If BNB Chain can equip itself with enough tools to meet the needs of both groups, it will move beyond the “mouse playground” phase (serving only retail investors) and become a “people’s market” (attracting institutional capital).