Most people see TermMax as a fixed-rate lending market. Looking deeper, the more interesting part is what happens to the debt after a loan is created.
A borrower locks collateral into a Gearing Token, which acts as the on-chain container for the collateral and debt. The debt itself is represented through Fixed-Rate Tokens (FTs) and X Tokens (XTs). The FT can mature into the underlying debt asset, while the XT represents the remaining interest component. That makes the borrowing obligation something that can be priced, traded, matched and eventually redeemed—not just a balance sitting inside a lending pool.
The next layer is the market. Instead of relying on one rigid interest curve, TermMax lets market makers and curators define range orders with different rates and sizes. Borrowers and lenders then consume those curves.
What stood out to me is how the design connects pricing, collateral, debt and settlement into one system.
And the final step matters: if liquidation cannot fully recover the position, TermMax can move from selling collateral to physical delivery, allowing FT holders to receive a proportional share of the remaining collateral.
#termmax @TermMax
A borrower locks collateral into a Gearing Token, which acts as the on-chain container for the collateral and debt. The debt itself is represented through Fixed-Rate Tokens (FTs) and X Tokens (XTs). The FT can mature into the underlying debt asset, while the XT represents the remaining interest component. That makes the borrowing obligation something that can be priced, traded, matched and eventually redeemed—not just a balance sitting inside a lending pool.
The next layer is the market. Instead of relying on one rigid interest curve, TermMax lets market makers and curators define range orders with different rates and sizes. Borrowers and lenders then consume those curves.
What stood out to me is how the design connects pricing, collateral, debt and settlement into one system.
And the final step matters: if liquidation cannot fully recover the position, TermMax can move from selling collateral to physical delivery, allowing FT holders to receive a proportional share of the remaining collateral.
#termmax @TermMax