Hey new followers đ
If you're just discovering @TermMax , here's a quick breakdown that'll help everything else make sense. The protocol runs on three interconnected tokens, and understanding how they work together is really the key to understanding TermMax itself.
FT â the discount bond
Think of FT as TermMax's core lending instrument, structured the same way traditional discount bonds work. Instead of earning interest through periodic payments, you buy FT below its face value (par), hold it, and redeem it 1:1 at maturity. The gap between what you paid and what you receive at redemption is your yield.
This structure is elegant because it removes ambiguity. There's no variable interest accruing in the background, no rate that resets based on market conditions. You know exactly what you paid, exactly what you'll get back, and exactly when. That's the "fixed rate" promise in its purest form â the math is locked in the moment you buy.
GT â the NFT for your debt position
GT represents something different: it's the borrower's side of the equation, tokenized as an NFT. When you take on a debt position through TermMax, that position isn't just a number in a smart contract â it's represented as a unique, ownable NFT.
This matters for a few reasons. First, it makes debt positions composable â they can potentially be transferred, traded, or integrated into other DeFi strategies, since NFTs are naturally portable across the ecosystem. Second, it gives borrowers a clean, verifiable record of their exact obligations tied to a specific token rather than a vague ledger entry. Your debt has an identity.
XT â the interest obligation
XT is the piece that pairs directly with FT. Where FT represents the principal-and-discount structure, XT represents the interest obligation side of the relationship. Together, FT and XT form the two halves of a complete fixed-rate lending position â one capturing the discount-to-par yield mechanic, the other capturing the ongoing interest commitment.
Why this three-token design matters
Most lending protocols bundle everything into a single position with variable exposure. TermMax instead separates the components â principal/discount (FT), debt ownership (GT), and interest obligation (XT) â into distinct, composable pieces. That separation is what allows the fixed-rate mechanism to function cleanly on both sides of the market. Lenders get predictable, bond-like returns. Borrowers get a clear, NFT-backed record of exactly what they owe and by when.
It's a more modular approach to fixed-rate DeFi lending, and once you see how FT, GT, and XT interact, the rest of the protocol starts clicking into place.
Fixed rates, all the way down. đŹ