The interesting part of a TermMax Vault may not be what the curator can do.
It may be what the curator cannot do.
A curator manages the strategy, but that control is not unlimited.
First, the capital can only be deployed into whitelisted markets.
Then there is a capacity limit, which caps how much capital the Vault can accept and helps prevent over-concentration.
The more interesting constraint is what the Vault can actually do inside those markets.
Vaults can use Lending Range Orders and Two-Way Range Orders, but they cannot create Borrowing Range Orders.
And even in a Two-Way Order, the Vault cannot simply collateralize its assets and borrow. It must lend first, then it can borrow by selling the FT acquired through that lending activity.
Finally, sensitive changes do not necessarily happen immediately. They can go through a timelock, giving the Guardian time to review and cancel a pending change.
Put together, these aren't just separate Vault features.
They define a bounded decision space for the curator:
→ where capital can go
→ how much can be deployed
→ what kind of orders can be created
→ how quickly strategy parameters can change
My takeaway is that a curator-managed Vault isn't simply delegated control.
It's delegated control inside a set of protocol-defined boundaries.
And that may be the more interesting way to think about Vault design.
#termmax @TermMax
It may be what the curator cannot do.
A curator manages the strategy, but that control is not unlimited.
First, the capital can only be deployed into whitelisted markets.
Then there is a capacity limit, which caps how much capital the Vault can accept and helps prevent over-concentration.
The more interesting constraint is what the Vault can actually do inside those markets.
Vaults can use Lending Range Orders and Two-Way Range Orders, but they cannot create Borrowing Range Orders.
And even in a Two-Way Order, the Vault cannot simply collateralize its assets and borrow. It must lend first, then it can borrow by selling the FT acquired through that lending activity.
Finally, sensitive changes do not necessarily happen immediately. They can go through a timelock, giving the Guardian time to review and cancel a pending change.
Put together, these aren't just separate Vault features.
They define a bounded decision space for the curator:
→ where capital can go
→ how much can be deployed
→ what kind of orders can be created
→ how quickly strategy parameters can change
My takeaway is that a curator-managed Vault isn't simply delegated control.
It's delegated control inside a set of protocol-defined boundaries.
And that may be the more interesting way to think about Vault design.
#termmax @TermMax