Hey I found the borrowing side of @TermMax easier to understand once I looked at what actually happens with the Fixed-Rate Tokens.
Let’s say someone has ETH as collateral but needs USDC without selling that ETH. On TermMax, they can lock the ETH in a Gearing Token and mint FTs based on the market’s maximum loan-to-value. Those FTs represent the debt that will be settled at maturity.
The interesting part is what happens next. Instead of waiting until maturity, the borrower can sell the FTs in the market at their current price and receive liquidity immediately. So the borrower gets access to funds while keeping the collateral locked rather than selling it outright.
There’s also a clear obligation attached to it: the debt still needs to be settled according to the agreed terms.
That’s what I like about this mechanism. #TermMax isn’t simply giving someone a loan; it turns the future debt claim into something that can be traded today, creating a different way to access liquidity from existing collateral.#TermMax
Let’s say someone has ETH as collateral but needs USDC without selling that ETH. On TermMax, they can lock the ETH in a Gearing Token and mint FTs based on the market’s maximum loan-to-value. Those FTs represent the debt that will be settled at maturity.
The interesting part is what happens next. Instead of waiting until maturity, the borrower can sell the FTs in the market at their current price and receive liquidity immediately. So the borrower gets access to funds while keeping the collateral locked rather than selling it outright.
There’s also a clear obligation attached to it: the debt still needs to be settled according to the agreed terms.
That’s what I like about this mechanism. #TermMax isn’t simply giving someone a loan; it turns the future debt claim into something that can be traded today, creating a different way to access liquidity from existing collateral.#TermMax