I almost scrolled right past this one.
Another "TermMax partners with X" headline, I figured. Same template everyone posts. Then I actually read it.
#TermMax just started letting people borrow against tokenized stocks. Not crypto real shares, wrapped on-chain through Ondo Global Markets, live now on BNB Chain.
Here's why that stopped me. In most DeFi lending, your rate can shift while you're not even looking. This one locks the rate the day you borrow. For a fund sitting on real assets, that's not a small thing. And it's not some no-name team behind it either the vaults are run by shops like MEV Capital and Keyrock, backed by Cumberland DRW and HashKey Capital.
But I sat with it a bit longer, and one thing kept nagging at me.
Stocks close. Every night, all weekend. Crypto never does. So there are long stretches where a tokenized stock has no live price to check against and from what I've read, no circuit breaker either if something moves hard during that gap. Crypto's liquidation systems were built for crypto's kind of chaos. I'm not sure they were built for that kind of silence.
So I'm not asking if this is smart. Institutions clearly think it is. I'm asking something smaller: has @TermMax actually tested what happens the first time one of these gaps hard overnight?
Another "TermMax partners with X" headline, I figured. Same template everyone posts. Then I actually read it.
#TermMax just started letting people borrow against tokenized stocks. Not crypto real shares, wrapped on-chain through Ondo Global Markets, live now on BNB Chain.
Here's why that stopped me. In most DeFi lending, your rate can shift while you're not even looking. This one locks the rate the day you borrow. For a fund sitting on real assets, that's not a small thing. And it's not some no-name team behind it either the vaults are run by shops like MEV Capital and Keyrock, backed by Cumberland DRW and HashKey Capital.
But I sat with it a bit longer, and one thing kept nagging at me.
Stocks close. Every night, all weekend. Crypto never does. So there are long stretches where a tokenized stock has no live price to check against and from what I've read, no circuit breaker either if something moves hard during that gap. Crypto's liquidation systems were built for crypto's kind of chaos. I'm not sure they were built for that kind of silence.
So I'm not asking if this is smart. Institutions clearly think it is. I'm asking something smaller: has @TermMax actually tested what happens the first time one of these gaps hard overnight?