#termmax $GPS $BEAT $STAR @TermMax
i keep thinking the weird part of a TermMax Gearing Token (GT) is not even the matched fixed APR.
its that the Fixed-Rate Token (FT) which can cancel the TermMax GT debt still has its own price before fixed maturity.
like okay... i open a TermMax Market, collateral token gets locked inside the GT, the fixed-term obligation sits there, FT exists against that GT debt and the matched APR already stopped moving. that should be the calm part right.
so why does FT keep trading?
and this is where my brain gets stuck because if the debt recorded inside the GT is already fixed, what exactly is still moving here... the obligation? no. maturity? also no. just the market cost of buying the thing that can repay it?
say the GT remembers 1,000 USDC due at maturity. that obligation isnt checking rates every five minutes or suddenly becoming 970 because something moved elsewhere.
but the FT sitting against that same TermMax GT debt can still be trading below face value before maturity.
so TermMax GT repayment somehow becomes two questions.
what does my GT actually owe at maturity?
and okay... what would it cost me to buy enough FT against that debt right now?
same GT debt... different market cost to buy the FT that can cancel it?
thats the part that keeps scratching at me because the matched APR already froze, fixed maturity is still sitting in TermMax unchanged and the GT keeps carrying the same obligation... meanwhile FT is still outside getting priced before face value takes over at maturity.
“the debt stopped moving before the claim did.”
i keep thinking the weird part of a TermMax Gearing Token (GT) is not even the matched fixed APR.
its that the Fixed-Rate Token (FT) which can cancel the TermMax GT debt still has its own price before fixed maturity.
like okay... i open a TermMax Market, collateral token gets locked inside the GT, the fixed-term obligation sits there, FT exists against that GT debt and the matched APR already stopped moving. that should be the calm part right.
so why does FT keep trading?
and this is where my brain gets stuck because if the debt recorded inside the GT is already fixed, what exactly is still moving here... the obligation? no. maturity? also no. just the market cost of buying the thing that can repay it?
say the GT remembers 1,000 USDC due at maturity. that obligation isnt checking rates every five minutes or suddenly becoming 970 because something moved elsewhere.
but the FT sitting against that same TermMax GT debt can still be trading below face value before maturity.
so TermMax GT repayment somehow becomes two questions.
what does my GT actually owe at maturity?
and okay... what would it cost me to buy enough FT against that debt right now?
same GT debt... different market cost to buy the FT that can cancel it?
thats the part that keeps scratching at me because the matched APR already froze, fixed maturity is still sitting in TermMax unchanged and the GT keeps carrying the same obligation... meanwhile FT is still outside getting priced before face value takes over at maturity.
“the debt stopped moving before the claim did.”
