Vault borrowing in DeFi is typically assumed to rely on direct token collateralization to source liquidity.
TermMax tokenizes positions into FT, XT, and GT. Order execution operates on range-order pricing curves, and FT is tradable before maturity.
That made me look at it differently.
In Two-Way Range Orders created by curators, vaults must first act as lenders by providing debt tokens and can only borrow by selling acquired FT tokens. Direct collateralization is restricted because the vault holds user deposits, keeping capital flow clear while liquidity providers
participate through ERC-4626 vault shares.
How secondary market depth for FT tokens handles sudden borrowing demands while curators manage withdrawal queue priorities under market volatility remains an execution variable.
Want to watch this in practice.
#termmax @TermMax
TermMax tokenizes positions into FT, XT, and GT. Order execution operates on range-order pricing curves, and FT is tradable before maturity.
That made me look at it differently.
In Two-Way Range Orders created by curators, vaults must first act as lenders by providing debt tokens and can only borrow by selling acquired FT tokens. Direct collateralization is restricted because the vault holds user deposits, keeping capital flow clear while liquidity providers
participate through ERC-4626 vault shares.
How secondary market depth for FT tokens handles sudden borrowing demands while curators manage withdrawal queue priorities under market volatility remains an execution variable.
Want to watch this in practice.
#termmax @TermMax
