I spent some time looking at how TermMax handles collateral when the asset itself isnt easy to sell, and that changed how I think about RWA lending.

With highly liquid tokens, liquidation can usually rely on an active market to convert collateral into the required value. But that approach becomes much harder when the underlying asset has limited buyers or slower settlement.

TermMax’s physical delivery mechanism gives lenders another route…. instead of depending entirely on an immediate market sale, eligible collateral can be transferred to the lender when certain liquidation conditions occur.

So for me, the interesting part isnt simply using RWAs as collateral…. its designing the lending system around what happens when that collateral doesnt have deep liquidity in the first place.

@TermMax #TermMax