#termmax @TermMax
#termmax TermMaxfi called this two organic yields and I nearly filed it under another vault APY post.
then I looked at the diagram underneath.
TermMax's own Dual Investment graphic says stablecoin depositors stack Aave yield + premiums from put buyers.
fine.
but follow the price below strike branch.
The USDT doesn't necessarily come back as USDT. If the puts are exercised, the depositor receives the underlying asset at the strike price, while keeping the premium and the Aave yield earned.
That makes the word “passive” a little more complicated than it first sounds.
The Aave leg is passive yield.
The second leg, at least how I'm reading it, is payment for accepting a very specific outcome: I am willing to own this asset at this price if the market gets there.
That's a different product in my head.
I went in thinking TermMax was adding another yield layer to Alpha. Came out thinking this looks closer to parking a conditional buy order somewhere that earns while it waits.
And maybe that's actually the cleaner use case.
Someone already wanting to accumulate a token at $X might prefer collecting premium + base yield while waiting instead of leaving USDT idle.
But I wouldn't compare the headline APY with a normal stablecoin vault without also looking at the strike.
One thing the announcement doesn't give me yet is the breakdown between the Aave yield and option premium across different vaults, or how quickly that premium compresses when lots of depositors choose the same side.
So the number I'd check first when these vaults are live probably isn't APY.
it's the strike.
because that's the price where “passive yield” can quietly turn into actually owning the asset.
#termmax TermMaxfi called this two organic yields and I nearly filed it under another vault APY post.
then I looked at the diagram underneath.
TermMax's own Dual Investment graphic says stablecoin depositors stack Aave yield + premiums from put buyers.
fine.
but follow the price below strike branch.
The USDT doesn't necessarily come back as USDT. If the puts are exercised, the depositor receives the underlying asset at the strike price, while keeping the premium and the Aave yield earned.
That makes the word “passive” a little more complicated than it first sounds.
The Aave leg is passive yield.
The second leg, at least how I'm reading it, is payment for accepting a very specific outcome: I am willing to own this asset at this price if the market gets there.
That's a different product in my head.
I went in thinking TermMax was adding another yield layer to Alpha. Came out thinking this looks closer to parking a conditional buy order somewhere that earns while it waits.
And maybe that's actually the cleaner use case.
Someone already wanting to accumulate a token at $X might prefer collecting premium + base yield while waiting instead of leaving USDT idle.
But I wouldn't compare the headline APY with a normal stablecoin vault without also looking at the strike.
One thing the announcement doesn't give me yet is the breakdown between the Aave yield and option premium across different vaults, or how quickly that premium compresses when lots of depositors choose the same side.
So the number I'd check first when these vaults are live probably isn't APY.
it's the strike.
because that's the price where “passive yield” can quietly turn into actually owning the asset.