The more I look into lending protocols, the more I realize that the interesting part isn’t always the yield…. it’s what happens when the market moves against you.
That’s something I started thinking about while exploring @TermMax Borrowing always comes with another side of the equation: collateral, maturity, liquidation and the conditions around the position. A fixed rate can make the borrowing cost easier to plan, but that doesn’t mean the rest of the risk disappears.
What caught my attention is how TermMax uses isolated markets. Keeping markets separated can make risk easier to understand instead of treating every asset and position as if they carry the same assumptions.
I think that’s the part worth watching long term. DeFi doesn’t become safer just because the numbers look attractive. The real test is how well a protocol handles the situations nobody wants to see. #TermMax
That’s something I started thinking about while exploring @TermMax Borrowing always comes with another side of the equation: collateral, maturity, liquidation and the conditions around the position. A fixed rate can make the borrowing cost easier to plan, but that doesn’t mean the rest of the risk disappears.
What caught my attention is how TermMax uses isolated markets. Keeping markets separated can make risk easier to understand instead of treating every asset and position as if they carry the same assumptions.
I think that’s the part worth watching long term. DeFi doesn’t become safer just because the numbers look attractive. The real test is how well a protocol handles the situations nobody wants to see. #TermMax