I keep getting stuck on one strange part of TermMax’s Atomic Orders. Liquidity normally chooses a market first, then waits for demand inside it. That choice feels harmless until another market offers better fixed-rate demand while the same dollar is sitting somewhere else.
Atomic Orders seem to loosen that boundary. One pool can effectively serve multiple markets, so capital doesn’t need to be duplicated just to remain available. I keep following what changes after that. Markets are no longer only competing for liquidity deposits. They may be competing for the attention of the same liquidity.
That feels different.
“the scarce thing stops being capital and starts being the right to pull capital toward you.”
A borrower offering stronger fixed-rate demand could attract liquidity that was never permanently assigned there. Then another market changes. The dollar moves again. Price discovery starts happening across markets rather than only inside isolated pools.
But this also makes me uneasy about what activity means. Deep available liquidity could look like adoption while the same capital is repeatedly being surfaced across different markets.
Not fake liquidity. Not necessarily new liquidity either.
I’d want to know how much unique capital exists underneath all that availability, and whether borrowers create enough recurring demand to keep winning its attention.
#termmax @TermMax
Atomic Orders seem to loosen that boundary. One pool can effectively serve multiple markets, so capital doesn’t need to be duplicated just to remain available. I keep following what changes after that. Markets are no longer only competing for liquidity deposits. They may be competing for the attention of the same liquidity.
That feels different.
“the scarce thing stops being capital and starts being the right to pull capital toward you.”
A borrower offering stronger fixed-rate demand could attract liquidity that was never permanently assigned there. Then another market changes. The dollar moves again. Price discovery starts happening across markets rather than only inside isolated pools.
But this also makes me uneasy about what activity means. Deep available liquidity could look like adoption while the same capital is repeatedly being surfaced across different markets.
Not fake liquidity. Not necessarily new liquidity either.
I’d want to know how much unique capital exists underneath all that availability, and whether borrowers create enough recurring demand to keep winning its attention.
#termmax @TermMax
