The more I looked into TermMax’s FT and XT setup, the more I realized the interesting part isnt just how debt is priced.
A debt token can be represented through two complementary pieces, where 1 FT + 1 XT makes up the full debt position. The FT carries the face-value claim toward maturity, while XT represents the remaining side of that position.
What stood out to me is how this changes the way the position can be used. A lender can keep the fixed-value component, while the borrower can work with the other component separately and potentially turn it into liquidity.
So for me, the interesting part isnt simply splitting one debt position…. its creating separate pieces that can serve different purposes while still belonging to the same underlying claim.
@TermMax #TermMax
A debt token can be represented through two complementary pieces, where 1 FT + 1 XT makes up the full debt position. The FT carries the face-value claim toward maturity, while XT represents the remaining side of that position.
What stood out to me is how this changes the way the position can be used. A lender can keep the fixed-value component, while the borrower can work with the other component separately and potentially turn it into liquidity.
So for me, the interesting part isnt simply splitting one debt position…. its creating separate pieces that can serve different purposes while still belonging to the same underlying claim.
@TermMax #TermMax