@TermMax #TermMax
The $80 the "smart repayment" option actually saves
Voice: numbers-first borrower
Ran the numbers on the "smart repayment" option in TermMax's borrower docs instead of skimming past it, because $80 saved isn't nothing if the mechanism actually works as described.
Docs example: Alice locks 2 ETH, borrows against it, her GT records 1,600 USDC as debt at maturity. Two ways to close it. Option 1: repay 1,600 USDC directly. Option 2: buy back 1,600 FT from the open market at a discount — say $0.95 per FT — spending 1,520 USDC instead of 1,600. 💵
That's an $80 saving on a $1,600 position, exactly 5% — because that's precisely what a $0.95 FT price represents: the market pricing in a fixed yield the discount already reflects. Buying back debt at a discount is functionally capturing that yield yourself instead of leaving it for whoever holds the FT to maturity. 🔄
The catch: this only works if FTs are actually trading below face value the moment you want to repay, and if there's enough depth to buy back your full 1,600 without moving price against yourself mid-purchase.
📊 Thin liquidity at exactly the wrong moment can erase some or all of that 5%.
Would you actually watch FT price and time your repayment around it, or is straight repayment simpler even if it costs a bit more? 🤔 Has anyone caught a real buyback discount like this — how big was it?
@TermMax #TermMax
The $80 the "smart repayment" option actually saves
Voice: numbers-first borrower
Ran the numbers on the "smart repayment" option in TermMax's borrower docs instead of skimming past it, because $80 saved isn't nothing if the mechanism actually works as described.
Docs example: Alice locks 2 ETH, borrows against it, her GT records 1,600 USDC as debt at maturity. Two ways to close it. Option 1: repay 1,600 USDC directly. Option 2: buy back 1,600 FT from the open market at a discount — say $0.95 per FT — spending 1,520 USDC instead of 1,600. 💵
That's an $80 saving on a $1,600 position, exactly 5% — because that's precisely what a $0.95 FT price represents: the market pricing in a fixed yield the discount already reflects. Buying back debt at a discount is functionally capturing that yield yourself instead of leaving it for whoever holds the FT to maturity. 🔄
The catch: this only works if FTs are actually trading below face value the moment you want to repay, and if there's enough depth to buy back your full 1,600 without moving price against yourself mid-purchase.
📊 Thin liquidity at exactly the wrong moment can erase some or all of that 5%.
Would you actually watch FT price and time your repayment around it, or is straight repayment simpler even if it costs a bit more? 🤔 Has anyone caught a real buyback discount like this — how big was it?
@TermMax #TermMax