One of the greatest limitations of any traditional DeFi platform without TermMax is the use of fluctuating rates on both lending and borrowing.
These changes in market rates create a high degree of volatility and make it very difficult for participants to predict their profits or losses.
This affects borrower payments because if the borrowing rate changes, payments increase/decrease according to market rate, whereas, if the lending rate decreases/increases, yield of that borrower is drastically impacted.
Borrowers are never able to predict the amounts they will have to repay, and borrowers can’t predict the amounts they will receive back when loan matures.
TermMax proposes a solution where in it allows you to fix the rates for both the borrowing and lending sides. This helps borrowers know precisely how much they would need to pay when the loan is matured.
Simultaneously it also provides certainty to lenders about the amounts they would receive when the loan expires, regardless of the change in the market rate.
#termmax @TermMax
These changes in market rates create a high degree of volatility and make it very difficult for participants to predict their profits or losses.
This affects borrower payments because if the borrowing rate changes, payments increase/decrease according to market rate, whereas, if the lending rate decreases/increases, yield of that borrower is drastically impacted.
Borrowers are never able to predict the amounts they will have to repay, and borrowers can’t predict the amounts they will receive back when loan matures.
TermMax proposes a solution where in it allows you to fix the rates for both the borrowing and lending sides. This helps borrowers know precisely how much they would need to pay when the loan is matured.
Simultaneously it also provides certainty to lenders about the amounts they would receive when the loan expires, regardless of the change in the market rate.
#termmax @TermMax
