@TermMax
Why I Like Fixed Rates in DeFi
I’ve always found variable rates a bit annoying when it comes to borrowing in DeFi.
You can take a loan when the rate looks okay and then things change. Market activity picks up and suddenly you’re paying more than you expected.
That’s why the fixed rate model behind TermMax makes sense to me.
If I know the rate before taking the loan I can actually plan around it. I know roughly what the borrowing cost will be instead of checking the rate again and again.
I think lenders get a similar benefit. They know what return they agreed to rather than depending completely on whatever the market is doing at that moment. #TermMax
It doesn’t mean there are no risks. There are still protocol risks and collateral risks.
I just like having one part of the equation stay predictable.
For me that’s the main appeal of fixed rate borrowing and lending in DeFi.
#termmax
Why I Like Fixed Rates in DeFi
I’ve always found variable rates a bit annoying when it comes to borrowing in DeFi.
You can take a loan when the rate looks okay and then things change. Market activity picks up and suddenly you’re paying more than you expected.
That’s why the fixed rate model behind TermMax makes sense to me.
If I know the rate before taking the loan I can actually plan around it. I know roughly what the borrowing cost will be instead of checking the rate again and again.
I think lenders get a similar benefit. They know what return they agreed to rather than depending completely on whatever the market is doing at that moment. #TermMax
It doesn’t mean there are no risks. There are still protocol risks and collateral risks.
I just like having one part of the equation stay predictable.
For me that’s the main appeal of fixed rate borrowing and lending in DeFi.
#termmax