Fixed Rates Sound Boring. That’s Kind of the Point.
DeFi rates can get stupid fast.
You borrow at one rate, wake up later, and the market has moved. Now your position costs way more than expected. Great system.
That’s why @TermMax caught my attention.
It’s building a decentralized market for fixed-rate borrowing and lending, with options trading on top.
The basic idea makes sense. Lock in a rate. Know what you’re paying. Know what you’re earning. Use options if you need another way to manage the risk.
No pretending that variable rates are always better.
But there’s still a big question.
Fixed rates only matter if there’s enough liquidity on both sides. Otherwise, getting the rate you want can be harder than just using the usual variable-rate market.
So I’m less interested in the “DeFi is the future” pitch.
I want to see whether people actually use fixed rates when the market gets messy.
That’s where TermMax gets interesting.#termmax @TermMax
DeFi rates can get stupid fast.
You borrow at one rate, wake up later, and the market has moved. Now your position costs way more than expected. Great system.
That’s why @TermMax caught my attention.
It’s building a decentralized market for fixed-rate borrowing and lending, with options trading on top.
The basic idea makes sense. Lock in a rate. Know what you’re paying. Know what you’re earning. Use options if you need another way to manage the risk.
No pretending that variable rates are always better.
But there’s still a big question.
Fixed rates only matter if there’s enough liquidity on both sides. Otherwise, getting the rate you want can be harder than just using the usual variable-rate market.
So I’m less interested in the “DeFi is the future” pitch.
I want to see whether people actually use fixed rates when the market gets messy.
That’s where TermMax gets interesting.#termmax @TermMax