Watched a TermMax market just sit there this morning. Decent limit order, rate looked fine, liquidity existed across a couple of terms and still nothing happened for close to forty minutes, until a curator went in and manually widened the range. Small thing, but it's been bugging me all day.
Because what it tells me is that TermMax isn't really doing automated rate discovery the way it looks like on the surface. There's a shared utilization curve, sure, but when that curve is even a little off, capital just parks itself at base yield instead of moving even while a good chunk of the book is already borrowed. At $32M TVL and $22M in active loans, that's not a lot of room to be inefficient in.
Then there's Alpha, which takes this further anyone can spin up their own pair, pick an oracle, set an LTV, and live with physical delivery if liquidation doesn't work out. Honestly I like that it forces people to think in risk premia instead of just chasing whatever APY is on top of the dashboard. But it also means more markets that need someone actually paying attention, not fewer.
And good curators were already the bottleneck before any of this. Adding more custom markets doesn't fix that, it just stretches the same people thinner. Still not sure if the aggregator holds up once half these ranges are basically experiments.
#TermMax @TermMax
Because what it tells me is that TermMax isn't really doing automated rate discovery the way it looks like on the surface. There's a shared utilization curve, sure, but when that curve is even a little off, capital just parks itself at base yield instead of moving even while a good chunk of the book is already borrowed. At $32M TVL and $22M in active loans, that's not a lot of room to be inefficient in.
Then there's Alpha, which takes this further anyone can spin up their own pair, pick an oracle, set an LTV, and live with physical delivery if liquidation doesn't work out. Honestly I like that it forces people to think in risk premia instead of just chasing whatever APY is on top of the dashboard. But it also means more markets that need someone actually paying attention, not fewer.
And good curators were already the bottleneck before any of this. Adding more custom markets doesn't fix that, it just stretches the same people thinner. Still not sure if the aggregator holds up once half these ranges are basically experiments.
#TermMax @TermMax