i was sitting on my couch when i thought about termmex and i was flabbergasted.... so here is what i thought.
There is a small detail in @TermMax that changes how I think about repayment.
A borrower doesn't necessarily have to repay the position only by handing back the original debt token.
The documentation describes another route: buying FTs from the market and using them to settle the debt.
Why does that matter?
Because FT can trade before maturity.
So the market price of that fixed claim can influence the economics of repayment.
Imagine a borrower has a debt obligation represented by FTs, but those FTs are available in the market at a discount. $TUT
Buying them could potentially be cheaper than simply sourcing the debt token elsewhere. $BTW
Of course, that depends entirely on the actual market price and liquidity at the time.
Nothing is guaranteed. $ACE
But I like that the repayment mechanism isn't completely rigid.
It creates another layer between the original borrowing transaction and final settlement.
That's the kind of DETAIL I usually look for when studying DeFi protocols.
#TermMax