I was reading through TermMax's docs on the Leverager role and one detail caught my attention: the leveraged position isn't tracked as a simple balance, it's minted as its own asset — a Gearing Token.
I assumed this was just a wrapper for collateral, but the mechanism is more self-contained than that. Alice deposits 1,000 USDC, flash-borrows 2,000 more, buys 3 ETH, and locks it into a GT. The GT then issues Fixed-Rate Tokens, which split into principal and interest — the interest part sells for XTs, and those XTs plus the principal redeem enough USDC to repay the flash loan. One transaction, no manual looping.
That's when it clicked why the GT needs to exist at all: it's the single object recording both sides of the position — debt and collateral — at once.
After checking the official TermMax V2 announcement, I noticed something worth flagging. The V2 blog post describes Smart Unwind, which lets leveragers set automated exit conditions on a GT before maturity. But the Leverager docs page still states plainly that this feature is not live yet — even after V2's broader rollout. That's a reasonable trade-off for a phased launch, but it leaves an open question: does "not live" apply protocol-wide, or only to certain markets?
#termmax @TermMax
I assumed this was just a wrapper for collateral, but the mechanism is more self-contained than that. Alice deposits 1,000 USDC, flash-borrows 2,000 more, buys 3 ETH, and locks it into a GT. The GT then issues Fixed-Rate Tokens, which split into principal and interest — the interest part sells for XTs, and those XTs plus the principal redeem enough USDC to repay the flash loan. One transaction, no manual looping.
That's when it clicked why the GT needs to exist at all: it's the single object recording both sides of the position — debt and collateral — at once.
After checking the official TermMax V2 announcement, I noticed something worth flagging. The V2 blog post describes Smart Unwind, which lets leveragers set automated exit conditions on a GT before maturity. But the Leverager docs page still states plainly that this feature is not live yet — even after V2's broader rollout. That's a reasonable trade-off for a phased launch, but it leaves an open question: does "not live" apply protocol-wide, or only to certain markets?
#termmax @TermMax