I was revisiting TermMax’s borrowing markets while ETH was barely moving, and the phrase liquidity without selling kept bothering me. It sounds almost costless lock ETH, receive USDC keep the upside.
But that isn’t the economic guarantee.
TermMax can fix the borrowing rate and maturity. It cannot fix the value of the collateral underneath the loan. Selling removes exposure borrowing preserves exposure while adding debt, interest, and liquidation risk.
That distinction matters TermMax fixes the price of the debt, not the safety of the position.
The same logic extends beyond ETH. Yield-bearing collateral may keep producing yield, and PTs can resemble fixed-income assets, but borrowing too aggressively can still turn them into liquidation trades. Tokenized equities add another layer: the loan can operate on-chain while the underlying equity still depends on traditional-market pricing, liquidity, and off-hours behavior.
So I’m less interested in maximum borrow capacity than safe borrow capacity: how much stablecoin can be extracted before volatility, borrowing cost, oracle pricing, or liquidity makes holding the collateral worse than simply selling part of it?
The TermMax tab is still open. Don’t sell now looks less like a benefit by itself and more like a risk-budgeting decision.
#termmax @TermMax
But that isn’t the economic guarantee.
TermMax can fix the borrowing rate and maturity. It cannot fix the value of the collateral underneath the loan. Selling removes exposure borrowing preserves exposure while adding debt, interest, and liquidation risk.
That distinction matters TermMax fixes the price of the debt, not the safety of the position.
The same logic extends beyond ETH. Yield-bearing collateral may keep producing yield, and PTs can resemble fixed-income assets, but borrowing too aggressively can still turn them into liquidation trades. Tokenized equities add another layer: the loan can operate on-chain while the underlying equity still depends on traditional-market pricing, liquidity, and off-hours behavior.
So I’m less interested in maximum borrow capacity than safe borrow capacity: how much stablecoin can be extracted before volatility, borrowing cost, oracle pricing, or liquidity makes holding the collateral worse than simply selling part of it?
The TermMax tab is still open. Don’t sell now looks less like a benefit by itself and more like a risk-budgeting decision.
#termmax @TermMax