#termmax @TermMax
A Good Yield Can Still Become a Bad Deal

When I look at DeFi lending opportunities, I usually check the yield first.

But from my experience looking at lending positions, I’ve noticed that the rate itself can become just as important as the initial yield.

A rate that looks attractive today can change tomorrow.

For a borrower, that can mean higher repayment costs.

For a lender, the yield can become less attractive as market rates change.

So even if the asset price stays exactly where it is, the economics of the position can change.

That’s what made me stop and look closer when I came across TermMax.

Instead of relying entirely on a floating rate, its fixed-rate market lets users choose a rate and maturity and keep that rate fixed until maturity.

I don’t think fixed rates are automatically better. Floating rates can work very well when the market moves in your favor.

But personally, when I look at a longer-term position, I like knowing what the cost or return will be before I enter it.

That’s why I decided to take a closer look at how TermMax actually builds its fixed-rate market.

Would you prefer a lower floating rate today, or a slightly higher rate that you can lock in?