#termmax @TermMax
i keep thinking if a flash loan helps build my TermMax leverage, then some piece of that flash-loan debt should still be sitting inside the position after.
otherwise what exactly did the borrowing.
say i start with USDC and push for more ETH exposure through the TermMax Leverager. temporary flash liquidity comes in, more collateral gets bought, and that collateral ends up inside a Gearing Token (GT).
so far my brain is fine with it.
except then the flash loan gets repaid inside the same transaction.
wait... with what?
because the leverage is still there. the GT is still carrying the larger collateral position and fixed-rate debt, Fixed-Rate Token (FT) has already been issued against that debt, X Token (XT) moved through the TermMax rate side... so how is the flash borrowing also already gone.
“borrowed to build it. not borrowed to stay.”
that part still feels backwards.
if the flash loan helped me reach the larger ETH position, why isn't the flash loan the thing sitting inside my GT afterward?
apparently i kept treating both debts like they were the same thing.
but the flash liquidity gets repaid once the TermMax leverage loop finishes. my GT doesn't disappear with it. the collateral is still sitting there, the fixed-rate debt is still attached, leverage still very real.
flash loan gone...
TermMax GT still here...
and somehow i was calling both of those “the borrowing” when only one of them was ever supposed to stay.
i keep thinking if a flash loan helps build my TermMax leverage, then some piece of that flash-loan debt should still be sitting inside the position after.
otherwise what exactly did the borrowing.
say i start with USDC and push for more ETH exposure through the TermMax Leverager. temporary flash liquidity comes in, more collateral gets bought, and that collateral ends up inside a Gearing Token (GT).
so far my brain is fine with it.
except then the flash loan gets repaid inside the same transaction.
wait... with what?
because the leverage is still there. the GT is still carrying the larger collateral position and fixed-rate debt, Fixed-Rate Token (FT) has already been issued against that debt, X Token (XT) moved through the TermMax rate side... so how is the flash borrowing also already gone.
“borrowed to build it. not borrowed to stay.”
that part still feels backwards.
if the flash loan helped me reach the larger ETH position, why isn't the flash loan the thing sitting inside my GT afterward?
apparently i kept treating both debts like they were the same thing.
but the flash liquidity gets repaid once the TermMax leverage loop finishes. my GT doesn't disappear with it. the collateral is still sitting there, the fixed-rate debt is still attached, leverage still very real.
flash loan gone...
TermMax GT still here...
and somehow i was calling both of those “the borrowing” when only one of them was ever supposed to stay.