The more I study @TermMax , the more I think calling TermPrime a pivot misses the point.
TermMax started with a DeFi problem I find pretty important floating rates make capital planning difficult. Its fixed rate design lets borrowers lock costs while lenders get defined maturity and yield.
TermPrime applies that same idea to a very different user.
Instead of anonymous liquidity, institutions can deal with known, KYB’d counterparties, existing credit lines and margin limits. Its first test was a 7 day fixed rate transaction on Canton, using CBTC as collateral and Canton Coin as the borrowed asset.
That changes the incentive structure.
DeFi optimizes openness and composability. Institutions usually optimize certainty, privacy and counterparty control.
The trade off is obvious too. Permissioned markets can reduce the open liquidity and composability that make DeFi powerful.
So I see TermPrime less as @TermMax leaving DeFi. And more as testing whether the same fixed rate financing primitive can work across two very different capital markets.
The question I’m watching is simple. Can liquidity eventually move between these worlds, or will they remain separate pools?
#termmax #TermMax #Termmax
TermMax started with a DeFi problem I find pretty important floating rates make capital planning difficult. Its fixed rate design lets borrowers lock costs while lenders get defined maturity and yield.
TermPrime applies that same idea to a very different user.
Instead of anonymous liquidity, institutions can deal with known, KYB’d counterparties, existing credit lines and margin limits. Its first test was a 7 day fixed rate transaction on Canton, using CBTC as collateral and Canton Coin as the borrowed asset.
That changes the incentive structure.
DeFi optimizes openness and composability. Institutions usually optimize certainty, privacy and counterparty control.
The trade off is obvious too. Permissioned markets can reduce the open liquidity and composability that make DeFi powerful.
So I see TermPrime less as @TermMax leaving DeFi. And more as testing whether the same fixed rate financing primitive can work across two very different capital markets.
The question I’m watching is simple. Can liquidity eventually move between these worlds, or will they remain separate pools?
#termmax #TermMax #Termmax