One thing I didn’t expect to focus on when looking at TermMax was the person sitting between a vault and its markets.
At first, a curated vault sounds simple: deposit assets, let the strategy handle the rest, collect the results.
But the interesting part is what “curated” actually means.
On TermMax, a curator decides how vault capital is deployed across eligible markets, including which orders to create, how much supply to allocate, and how pricing parameters are configured. That makes the curator part of the risk-management layer, not just someone choosing a few settings.
And there are constraints around that power.
Vaults have capacity limits. Markets need to be whitelisted. Important parameter changes can be subject to timelocks, while a guardian can intervene during the waiting period.
That made me rethink the word “passive.”
For the depositor, the experience can be passive.
The underlying strategy definitely isn’t.
Someone still has to decide where liquidity goes, how much risk is acceptable, and when a market no longer deserves capital.
That creates a different question for DeFi yield products:
Is the real product the yield itself, or the risk-management process that decides where that yield comes from?
For me, that’s a much more interesting way to evaluate a vault.
#termmax @TermMax
At first, a curated vault sounds simple: deposit assets, let the strategy handle the rest, collect the results.
But the interesting part is what “curated” actually means.
On TermMax, a curator decides how vault capital is deployed across eligible markets, including which orders to create, how much supply to allocate, and how pricing parameters are configured. That makes the curator part of the risk-management layer, not just someone choosing a few settings.
And there are constraints around that power.
Vaults have capacity limits. Markets need to be whitelisted. Important parameter changes can be subject to timelocks, while a guardian can intervene during the waiting period.
That made me rethink the word “passive.”
For the depositor, the experience can be passive.
The underlying strategy definitely isn’t.
Someone still has to decide where liquidity goes, how much risk is acceptable, and when a market no longer deserves capital.
That creates a different question for DeFi yield products:
Is the real product the yield itself, or the risk-management process that decides where that yield comes from?
For me, that’s a much more interesting way to evaluate a vault.
#termmax @TermMax