From 7% to 16% and back in three months. Here's why I stopped guessing my yield on TermMax.
I pulled up the historical rate chart on one of the USDC markets on TermMax last night and it made me appreciate fixed APR way more than I expected. The USDC/ynRWAx market on Ethereum showed the floating borrow rate spiking from around 7% all the way up to nearly 16% back in late June, then sliding back down over the following weeks. That's more than double the rate in just a few days, with zero warning.
If I had a lending position sitting on that floating rate the whole time, my actual return over three months would have been almost impossible to predict in advance. TermMax fixes exactly that problem through FT tokens.
I tested it myself. I deposited 10,000 USDC into that same market at the current lend APR of 7.58%. The platform showed me the exact numbers before I confirmed anything: I'd receive roughly 10,120 FT tokens, with an effective APR of 7.42% after the small 0.16% fee, and a maturity date locked at October 16, 2026. No surprises, no rate that shifts underneath me while I wait.
What struck me is that the rate barely moved even after my deposit, staying at 7.58% before and after. With over $257K already sitting in lend liquidity on this market, my size wasn't even close to shifting anything, and that's exactly the kind of stability I want before locking capital for almost two months.
This is the difference between guessing your yield and actually knowing it upfront on #TermMax . @TermMax keeps expanding these fixed markets across more assets too, which makes planning ahead a lot easier.
Would you rather chase a floating rate that could double overnight, or lock in a known number and just wait it out?
I pulled up the historical rate chart on one of the USDC markets on TermMax last night and it made me appreciate fixed APR way more than I expected. The USDC/ynRWAx market on Ethereum showed the floating borrow rate spiking from around 7% all the way up to nearly 16% back in late June, then sliding back down over the following weeks. That's more than double the rate in just a few days, with zero warning.
If I had a lending position sitting on that floating rate the whole time, my actual return over three months would have been almost impossible to predict in advance. TermMax fixes exactly that problem through FT tokens.
I tested it myself. I deposited 10,000 USDC into that same market at the current lend APR of 7.58%. The platform showed me the exact numbers before I confirmed anything: I'd receive roughly 10,120 FT tokens, with an effective APR of 7.42% after the small 0.16% fee, and a maturity date locked at October 16, 2026. No surprises, no rate that shifts underneath me while I wait.
What struck me is that the rate barely moved even after my deposit, staying at 7.58% before and after. With over $257K already sitting in lend liquidity on this market, my size wasn't even close to shifting anything, and that's exactly the kind of stability I want before locking capital for almost two months.
This is the difference between guessing your yield and actually knowing it upfront on #TermMax . @TermMax keeps expanding these fixed markets across more assets too, which makes planning ahead a lot easier.
Would you rather chase a floating rate that could double overnight, or lock in a known number and just wait it out?
