The first time I felt that, “even borrowing money should be something you can place limit orders for.”
With DeFi lending and borrowing before, I’d gotten used to one thing: the protocol offers a certain interest rate, and I decide whether to borrow or not.
But when you think about it carefully, that’s actually rather strange.
If I want to buy BTC, I can place an order at the price I’m willing to accept.
If I want to sell ETH, I can also wait until the market reaches my price.
So why, when it comes to the “price of money itself”—that is, the interest rate—are users the ones who can only accept the current quote?
TermMax V2’s Limit Order is a design I find especially interesting.
Lenders can say:
“If the return is below this threshold, I won’t lend my money.”
Borrowers can also say:
“If the financing cost exceeds this number, I’d rather wait.”
At that point, the interest rate is no longer just an APY that fluctuates on the protocol page.
It starts to become a price that both sides negotiate—something that can be bought and sold.
This is particularly interesting for large capital.
A few hundred dollars may trade instantly with no big deal, but once positions get bigger, if you try to get filled immediately by consuming market depth, you may end up making your effective interest rate worse and worse.
Better to just post your own price there and let the other side come to you.
I believe that a mature on-chain interest rate market should ultimately work like this.
Not where the protocol tells everyone, “How much money is worth today.”
But where some people are in a hurry to borrow, and others aren’t; some are willing to accept 5%, while others insist on 7%.
In the end, the real interest rate is what these people trade for.
If TermMax can deepen this market, then “interest rate” will gradually move from being just a parameter to becoming a truly tradable asset price.
@TermMax #TermMax
TermMax V2 has expanded Limit Orders across all markets, allowing borrowers to set their maximum acceptable interest rate and lenders to set their minimum acceptable interest rate.
With DeFi lending and borrowing before, I’d gotten used to one thing: the protocol offers a certain interest rate, and I decide whether to borrow or not.
But when you think about it carefully, that’s actually rather strange.
If I want to buy BTC, I can place an order at the price I’m willing to accept.
If I want to sell ETH, I can also wait until the market reaches my price.
So why, when it comes to the “price of money itself”—that is, the interest rate—are users the ones who can only accept the current quote?
TermMax V2’s Limit Order is a design I find especially interesting.
Lenders can say:
“If the return is below this threshold, I won’t lend my money.”
Borrowers can also say:
“If the financing cost exceeds this number, I’d rather wait.”
At that point, the interest rate is no longer just an APY that fluctuates on the protocol page.
It starts to become a price that both sides negotiate—something that can be bought and sold.
This is particularly interesting for large capital.
A few hundred dollars may trade instantly with no big deal, but once positions get bigger, if you try to get filled immediately by consuming market depth, you may end up making your effective interest rate worse and worse.
Better to just post your own price there and let the other side come to you.
I believe that a mature on-chain interest rate market should ultimately work like this.
Not where the protocol tells everyone, “How much money is worth today.”
But where some people are in a hurry to borrow, and others aren’t; some are willing to accept 5%, while others insist on 7%.
In the end, the real interest rate is what these people trade for.
If TermMax can deepen this market, then “interest rate” will gradually move from being just a parameter to becoming a truly tradable asset price.
@TermMax #TermMax
TermMax V2 has expanded Limit Orders across all markets, allowing borrowers to set their maximum acceptable interest rate and lenders to set their minimum acceptable interest rate.