Something I noticed while reading through TermMax’s docs is that “fixed rate” sounds much simpler than what’s actually happening underneath.
The part that stood out to me was limit orders.
Instead of just taking whatever rate is available, lenders can set the minimum rate they’re willing to lend at, while borrowers can set the maximum they’re willing to pay. If the market doesn’t meet that price, the order can simply sit there waiting for someone on the other side.
I actually like this because it gives users a choice that you don’t always get with DeFi lending. Maybe I’m happy to lend at 8%, but not at 6%. I don’t necessarily want to keep checking the market until the rate moves. I can put my terms out there and wait.
But there’s a small learning curve here too.
Someone coming from a normal lending pool might assume that placing an order means their funds are basically earning already. That isn’t necessarily the case. A limit order still needs someone willing to take the other side, so the rate you want and the rate you actually get can be two different things.
It made me think about TermMax less as a typical lending pool and more as a market for borrowing costs.
Fixed rates give you certainty once the position is established, but getting that position filled still comes down to liquidity and what other users are willing to accept.
Curious which side people actually prefer in practice: waiting for their rate or taking the available rate and moving on?
#TermMax @TermMax
The part that stood out to me was limit orders.
Instead of just taking whatever rate is available, lenders can set the minimum rate they’re willing to lend at, while borrowers can set the maximum they’re willing to pay. If the market doesn’t meet that price, the order can simply sit there waiting for someone on the other side.
I actually like this because it gives users a choice that you don’t always get with DeFi lending. Maybe I’m happy to lend at 8%, but not at 6%. I don’t necessarily want to keep checking the market until the rate moves. I can put my terms out there and wait.
But there’s a small learning curve here too.
Someone coming from a normal lending pool might assume that placing an order means their funds are basically earning already. That isn’t necessarily the case. A limit order still needs someone willing to take the other side, so the rate you want and the rate you actually get can be two different things.
It made me think about TermMax less as a typical lending pool and more as a market for borrowing costs.
Fixed rates give you certainty once the position is established, but getting that position filled still comes down to liquidity and what other users are willing to accept.
Curious which side people actually prefer in practice: waiting for their rate or taking the available rate and moving on?
#TermMax @TermMax