DeFi borrowers if you have 2 options, which would you choose? ๐
A) 5% fixed for 90 days ๐
B) 3% variable with no fixed rate ๐
At first glance, 3% variable looks like the obvious winner.
But what if market conditions push that rate to 6%, 8% or even higher?
Your position hasn't changed.
Your collateral hasn't changed.
But your cost of borrowing has.
Thatโs the trade off:
Variable rates: potentially cheaper + more flexible, but your future cost can change.
Fixed rates: you may pay more upfront, but you know your borrowing cost for the defined maturity.
This is the idea behind TermMax - bringing fixed rate, fixed maturity borrowing and lending to DeFi.
So what would you choose?
A: 5% fixed ๐
B: 3% variable ๐
and more importantly why? ๐
#TermMax @TermMax
A) 5% fixed for 90 days ๐
B) 3% variable with no fixed rate ๐
At first glance, 3% variable looks like the obvious winner.
But what if market conditions push that rate to 6%, 8% or even higher?
Your position hasn't changed.
Your collateral hasn't changed.
But your cost of borrowing has.
Thatโs the trade off:
Variable rates: potentially cheaper + more flexible, but your future cost can change.
Fixed rates: you may pay more upfront, but you know your borrowing cost for the defined maturity.
This is the idea behind TermMax - bringing fixed rate, fixed maturity borrowing and lending to DeFi.
So what would you choose?
A: 5% fixed ๐
B: 3% variable ๐
and more importantly why? ๐
#TermMax @TermMax