#TermMax
I’ve been looking at TermMax’s range orders differently lately. At first, I treated them as another way for market makers to place liquidity and earn from lending. But the more I think about the pricing curve, the more it looks like a way to express a rate view.
A market maker does not have to offer liquidity at one point. With a range order, they can define how terms change across a range, meaning their liquidity can reflect where they are comfortable participating. If I think borrowing demand will stay strong only up to a certain rate, I can shape my curve around that assumption instead of accepting whatever rate appears.
The Two-Way Range Order makes this more interesting because borrowing and lending curves can sit inside the same order. That makes liquidity provision feel closer to positioning around rates, rather than simply depositing capital and waiting.
Still, I’m curious about execution quality. A curve on paper means little if market activity stays outside it, or if changing conditions make the rate view stale. I’d want to watch how quickly these ranges fill, how often makers adjust them, and whether the flexibility translates into better capital efficiency over time.
#termmax @TermMax
I’ve been looking at TermMax’s range orders differently lately. At first, I treated them as another way for market makers to place liquidity and earn from lending. But the more I think about the pricing curve, the more it looks like a way to express a rate view.
A market maker does not have to offer liquidity at one point. With a range order, they can define how terms change across a range, meaning their liquidity can reflect where they are comfortable participating. If I think borrowing demand will stay strong only up to a certain rate, I can shape my curve around that assumption instead of accepting whatever rate appears.
The Two-Way Range Order makes this more interesting because borrowing and lending curves can sit inside the same order. That makes liquidity provision feel closer to positioning around rates, rather than simply depositing capital and waiting.
Still, I’m curious about execution quality. A curve on paper means little if market activity stays outside it, or if changing conditions make the rate view stale. I’d want to watch how quickly these ranges fill, how often makers adjust them, and whether the flexibility translates into better capital efficiency over time.
#termmax @TermMax