Been looking at TermMax and one metric caught my attention: the gap between capital sitting in the protocol and capital actually being used.
Recent DefiLlama data puts TermMax around $34.1M TVL, with roughly $29.5M in active loans. That means active loans are close to 87% of TVL — a much different picture from simply looking at the headline TVL number.
At first, the $34M TVL figure doesn't look particularly important. But the utilization angle is more interesting. TermMax is built around fixed-rate, fixed-term lending and borrowing, so relatively high loan activity could suggest that deposited liquidity is being put to work rather than sitting idle. That's an interpretation, though, not proof of organic demand.
The comparison is useful. An earlier DefiLlama snapshot showed about $26.7M TVL and only $4.78M borrowed. The current figures therefore represent a meaningful change in the relationship between deposits and borrowing activity.
There is another piece I find worth watching: TermMax raised $4.25M in its November 30, 2023 seed round, while the current roadmap is moving toward V2 vault architecture, options-style products and eventual governance.
Could the higher loan utilization reflect genuine product-market fit, a change in market composition, or simply a few large positions? Hard to tell from aggregate TVL alone.
The missing piece for me is wallet-level borrower concentration and loan maturity data. If anyone has tracked that over time, I'd be interested in comparing it with the current utilization picture.
@TermMax #TermMax
Recent DefiLlama data puts TermMax around $34.1M TVL, with roughly $29.5M in active loans. That means active loans are close to 87% of TVL — a much different picture from simply looking at the headline TVL number.
At first, the $34M TVL figure doesn't look particularly important. But the utilization angle is more interesting. TermMax is built around fixed-rate, fixed-term lending and borrowing, so relatively high loan activity could suggest that deposited liquidity is being put to work rather than sitting idle. That's an interpretation, though, not proof of organic demand.
The comparison is useful. An earlier DefiLlama snapshot showed about $26.7M TVL and only $4.78M borrowed. The current figures therefore represent a meaningful change in the relationship between deposits and borrowing activity.
There is another piece I find worth watching: TermMax raised $4.25M in its November 30, 2023 seed round, while the current roadmap is moving toward V2 vault architecture, options-style products and eventual governance.
Could the higher loan utilization reflect genuine product-market fit, a change in market composition, or simply a few large positions? Hard to tell from aggregate TVL alone.
The missing piece for me is wallet-level borrower concentration and loan maturity data. If anyone has tracked that over time, I'd be interested in comparing it with the current utilization picture.
@TermMax #TermMax