#termmax @TermMax I’m now looking at @TermMax and, oddly enough, I care less about whether “interest rates are high.” What I really want to see is whether it can turn lending and borrowing into a real market.
In most DeFi lending, interest rates are actually calculated by the protocol based on the funds utilization rate, and users simply accept the result.
TermMax is a bit different. It allows both borrowers and lenders to express their prices through limit orders: if a lender thinks anything below 7% isn’t worth it, they don’t have to lend; if a borrower thinks above 9% is too expensive, they can wait.
At first glance it just looks like an added order feature, but the change underneath is huge—interest rates are no longer merely a number derived from a protocol formula; they start to be determined through real competition between supply and demand.
I think this is the most worth paying attention to aspect of $TMX.
If, in the future, stable trades can form across different terms, then what TermMax is building is not a “fixed-income product,” but an on-chain interest rate market where the price of capital is truly determined by the market. @TermMax
In most DeFi lending, interest rates are actually calculated by the protocol based on the funds utilization rate, and users simply accept the result.
TermMax is a bit different. It allows both borrowers and lenders to express their prices through limit orders: if a lender thinks anything below 7% isn’t worth it, they don’t have to lend; if a borrower thinks above 9% is too expensive, they can wait.
At first glance it just looks like an added order feature, but the change underneath is huge—interest rates are no longer merely a number derived from a protocol formula; they start to be determined through real competition between supply and demand.
I think this is the most worth paying attention to aspect of $TMX.
If, in the future, stable trades can form across different terms, then what TermMax is building is not a “fixed-income product,” but an on-chain interest rate market where the price of capital is truly determined by the market. @TermMax