A fixed rate is not the same thing as a fixed quote.
I nearly treated 10% APR on a TermMax curve as if it were a price tag. It is not. Before a trade is matched, the quote still depends on how much liquidity the order consumes.
TermMax Range Orders price liquidity in segments. In one documented lending curve, most of the reserve moves from 10% toward roughly 15%. The final 0.2 million segment climbs from 15% toward roughly 40%. A small test and a much larger borrow can therefore clear at different effective rates, even inside the same market and maturity.
Once the trade is matched, the rate and maturity stop drifting for that position. Before the match, depth and slippage still matter.
So if I compare two TermMax markets, I will not save only the headline APR. I will record the debt asset, collateral, maturity, order size and final matched rate. Otherwise I may be comparing the first point on one curve with the expensive tail of another.
“Fixed” describes the financing after execution. It does not make pre-trade liquidity flat.
@TermMax #TermMax
I nearly treated 10% APR on a TermMax curve as if it were a price tag. It is not. Before a trade is matched, the quote still depends on how much liquidity the order consumes.
TermMax Range Orders price liquidity in segments. In one documented lending curve, most of the reserve moves from 10% toward roughly 15%. The final 0.2 million segment climbs from 15% toward roughly 40%. A small test and a much larger borrow can therefore clear at different effective rates, even inside the same market and maturity.
Once the trade is matched, the rate and maturity stop drifting for that position. Before the match, depth and slippage still matter.
So if I compare two TermMax markets, I will not save only the headline APR. I will record the debt asset, collateral, maturity, order size and final matched rate. Otherwise I may be comparing the first point on one curve with the expensive tail of another.
“Fixed” describes the financing after execution. It does not make pre-trade liquidity flat.
@TermMax #TermMax
