I caught myself doing something pretty dumb while looking at @TermMax today.
I was looking at a $10k collateral position and thinking about how much I could borrow from it.
Then I stopped and thought: why would I borrow the maximum if I don't actually need it?
If I need $3k, I’d rather take $3k and leave the rest of the collateral as room for the market to move.
That sounds obvious, but I think it’s easy to forget when a lending app shows you a big number next to “available to borrow.”
The number you can borrow and the number you should borrow are two very different things.
That’s probably the more useful takeaway for me from using these protocols. I’d rather work backwards from what I actually need, instead of starting with the maximum leverage available.
The $TMX TGE is coming on August 25, so I’ll obviously be watching what happens around the launch.
But I’m also curious what the actual usage looks like a few weeks later. If people are coming back to borrow and manage positions, that means more to me than a lot of launch-day attention.
For now, I’m keeping $TMX on the watchlist and watching the product first.
#TermMax
When borrowing against your collateral, what matters most to you?