Here’s a DeFi question I don’t think gets enough attention:
Who actually decides the price of credit?
In many AMMs, users interact with the pricing curve the protocol gives them.
You take the available rate.
But what if market makers could actually shape the pricing curve themselves?
That’s one of the ideas behind TermMax.
Instead of treating the AMM pricing curve as something fixed, TermMax allows curators and market makers to configure pricing curves and range orders for specific markets.
The interesting part is what happens next.
Different liquidity providers can create different ranges.
Those ranges can be aggregated into the same market, giving borrowers and lenders more choices around the rates they’re willing to accept.
To me, that’s a much more interesting problem than simply asking:
“What’s the borrowing rate?”
The better question is:
“Who gets to decide what the borrowing rate should be?”
If DeFi is supposed to create open financial markets, giving market makers more control over how credit is priced could become an important piece of that infrastructure.
But there’s still a question I’d want to see answered:
Does more pricing flexibility actually lead to better markets, or does it simply create more complexity?
That’s where things get interesting.
DYOR. This is educational content, not financial advice.
#Termmax @TermMax
Who actually decides the price of credit?
In many AMMs, users interact with the pricing curve the protocol gives them.
You take the available rate.
But what if market makers could actually shape the pricing curve themselves?
That’s one of the ideas behind TermMax.
Instead of treating the AMM pricing curve as something fixed, TermMax allows curators and market makers to configure pricing curves and range orders for specific markets.
The interesting part is what happens next.
Different liquidity providers can create different ranges.
Those ranges can be aggregated into the same market, giving borrowers and lenders more choices around the rates they’re willing to accept.
To me, that’s a much more interesting problem than simply asking:
“What’s the borrowing rate?”
The better question is:
“Who gets to decide what the borrowing rate should be?”
If DeFi is supposed to create open financial markets, giving market makers more control over how credit is priced could become an important piece of that infrastructure.
But there’s still a question I’d want to see answered:
Does more pricing flexibility actually lead to better markets, or does it simply create more complexity?
That’s where things get interesting.
DYOR. This is educational content, not financial advice.
#Termmax @TermMax