Greetings to all parishioner-catlings 🐱
Today I’d like to look at an interesting aspect of TermMax—how fixed-rate lending can work with RWA and low-liquidity assets.
With a liquid asset, everything is more or less straightforward: if collateral needs to be sold, it can be moved to the market. But what do you do when liquidity is scarce, and a large sale by itself could significantly affect the price?
For such a scenario, TermMax provides for physical delivery. If the collateral can’t be realized effectively through the market, the lender may receive the actual asset instead of it being forcibly sold.
Fixed-rate lending adds another important detail here—the loan terms are set in advance. There is a specific rate, a defined term, and a clear position structure.
For me, this is a good example of why RWA is needed at all in terms of credit infrastructure.
Tokenizing a real asset is only the first step. It gets much more interesting when it gains the ability to work as collateral in a full-fledged on-chain financial environment.
#termmax @TermMax
Today I’d like to look at an interesting aspect of TermMax—how fixed-rate lending can work with RWA and low-liquidity assets.
With a liquid asset, everything is more or less straightforward: if collateral needs to be sold, it can be moved to the market. But what do you do when liquidity is scarce, and a large sale by itself could significantly affect the price?
For such a scenario, TermMax provides for physical delivery. If the collateral can’t be realized effectively through the market, the lender may receive the actual asset instead of it being forcibly sold.
Fixed-rate lending adds another important detail here—the loan terms are set in advance. There is a specific rate, a defined term, and a clear position structure.
For me, this is a good example of why RWA is needed at all in terms of credit infrastructure.
Tokenizing a real asset is only the first step. It gets much more interesting when it gains the ability to work as collateral in a full-fledged on-chain financial environment.
#termmax @TermMax
