In my review of TermMax’s Two-Way Range Orders, I noticed something easy to miss: setting your own spread sounds like power, but it actually shifts the burden entirely onto the user.
The feature allows you to set a borrowing curve and a lending curve at the same time. You act as the market maker and pocket the spread.
On paper, this looks like the ultimate passive income tool.
But automated curves do not adjust to sudden off-chain macroeconomic shocks unless you update them.
If market rates suddenly gap up, a static Two-Way Range Order does not protect you—it ensures you get picked off by arbitrageurs who borrow from you at stale, cheaper rates.
That is why I think automated flexibility vs manual oversight is the better comparison here.
For TermMax, giving users market-maker tools is brilliant. But expecting average users to manage spread risk during high volatility is optimistic.
The question is whether TermMax will build automated curve adjustments, or leave users to fight the market manually.
@TermMax #termmax
The feature allows you to set a borrowing curve and a lending curve at the same time. You act as the market maker and pocket the spread.
On paper, this looks like the ultimate passive income tool.
But automated curves do not adjust to sudden off-chain macroeconomic shocks unless you update them.
If market rates suddenly gap up, a static Two-Way Range Order does not protect you—it ensures you get picked off by arbitrageurs who borrow from you at stale, cheaper rates.
That is why I think automated flexibility vs manual oversight is the better comparison here.
For TermMax, giving users market-maker tools is brilliant. But expecting average users to manage spread risk during high volatility is optimistic.
The question is whether TermMax will build automated curve adjustments, or leave users to fight the market manually.
@TermMax #termmax