#termmax @TermMax In DeFi, many people only focus on whether the “APY is high or not,” but I believe what truly determines whether capital can stay in the system long-term is whether the returns and costs are predictable enough.
That’s also why I pay attention to @TermMax .
Floating interest rates are usually fine when the market is stable, but once the market sees dramatic volatility, borrowing costs can change rapidly. Strategies that initially look profitable can easily have their upside eroded by interest.
The value of fixed interest rates lies here:
Borrowers can know their funding costs in advance,
Lenders can estimate their returns more clearly,
and when executing leveraged or arbitrage strategies, it’s also easier to calculate the true ROI.
If DeFi wants to move from “chasing high APY” to a more mature on-chain financial market, fixed interest rates could be a very important piece of foundational infrastructure.
Stay tuned for the development of TermMax.
#TermMax
That’s also why I pay attention to @TermMax .
Floating interest rates are usually fine when the market is stable, but once the market sees dramatic volatility, borrowing costs can change rapidly. Strategies that initially look profitable can easily have their upside eroded by interest.
The value of fixed interest rates lies here:
Borrowers can know their funding costs in advance,
Lenders can estimate their returns more clearly,
and when executing leveraged or arbitrage strategies, it’s also easier to calculate the true ROI.
If DeFi wants to move from “chasing high APY” to a more mature on-chain financial market, fixed interest rates could be a very important piece of foundational infrastructure.
Stay tuned for the development of TermMax.
#TermMax