#termmax @TermMax
Fixed Interest vs. Floating Interest – A Solution for Professional Investors 📊
In traditional DeFi, most Lending platforms use a floating interest rate mechanism (Variable Rate). This model carries significant risk when the market fluctuates: borrowers face the sudden risk of an unexpected spike in their cost of capital, while lenders cannot accurately predict the APY they will actually earn. @TermMax thoroughly solves this problem by providing a borrowing and lending protocol with a fixed interest rate (Fixed-Rate). Locking in the interest rate in advance helps investors easily build a well-structured cash-flow management strategy, completely eliminating unexpected factors from the market and protecting profit margins in the most optimal way. 🔒✨