#termmax - I was reading @TermMax a little in depth last night. At first, I noticed the fixed-rate lending thing. Then, when I went a little deeper, I realized that just looking at lending is not enough. The whole model cannot be understood without understanding both the lender and the borrower.
I imagined myself as a 'lender'..
- Let's say, I have 10 thousand dollars. I lent it to #Termmax My intention is to use that capital to bring a certain interest. With a fixed rate, I can know at the beginning what my return will be. There is no tension that the rate will decrease due to market fluctuations.
Again, I looked at it from the borrower's perspective..
- Let's say, someone has Bitcoin but he doesn't want to sell it. But he needs money. Then borrowing capital by placing collateral is a great option for him. With a fixed rate, he gets a clear idea of his cost at the time of borrowing.
What I found most interesting—one person's idle capital is another person's financing need. The demand from both sides is matching. In many places in DeFi lending, the rate depends on the market. Sometimes lower, sometimes higher. TermMax is trying to provide a slightly different experience with fixed rates.
After reading for a few days, it seems that it would be wrong to think of TermMax as just 'another lending protocol'. They are actually trying to bring lending and borrowing into a more predictable structure. Much like traditional finance. However, how much adoption it gets in reality, how much users actually use it—that remains to be seen. 🙂
I imagined myself as a 'lender'..
- Let's say, I have 10 thousand dollars. I lent it to #Termmax My intention is to use that capital to bring a certain interest. With a fixed rate, I can know at the beginning what my return will be. There is no tension that the rate will decrease due to market fluctuations.
Again, I looked at it from the borrower's perspective..
- Let's say, someone has Bitcoin but he doesn't want to sell it. But he needs money. Then borrowing capital by placing collateral is a great option for him. With a fixed rate, he gets a clear idea of his cost at the time of borrowing.
What I found most interesting—one person's idle capital is another person's financing need. The demand from both sides is matching. In many places in DeFi lending, the rate depends on the market. Sometimes lower, sometimes higher. TermMax is trying to provide a slightly different experience with fixed rates.
After reading for a few days, it seems that it would be wrong to think of TermMax as just 'another lending protocol'. They are actually trying to bring lending and borrowing into a more predictable structure. Much like traditional finance. However, how much adoption it gets in reality, how much users actually use it—that remains to be seen. 🙂