In the auction of @TermMax , the most counterintuitive advice is: don’t scheme—just state the real bottom line in your heart.
I didn’t believe it at first. Every market teaches people to “leave plenty of room” and “see what others bid first,” so you naturally should be cautious with auctions too. The result: I suffered a loss the very first time. Wanting to earn a bit more, I raised my bid above my psychological price. After one cycle, the funds never actually got matched—because the interest rate I wanted was too high, and the market couldn’t provide it. Having money sit idle is essentially a loss. $ACE
Once you understand the mechanism, it makes sense. TermMax is an auction with a unified clearing price. The final transaction price doesn’t follow your bid directly; it’s determined by the intersection point of all bids. The higher you bid, the more the clearing price won’t get pushed higher—if your bid is too far from the intersection point, you simply get eliminated. And the reverse is also true: if you set your bottom line too low, then when the clearing price lands between your bid and your bottom line, you’ll end up getting filled at an interest rate you never intended to accept. $BTW
So in this design, your real bottom line is the only correct bid. If you get filled, you receive the clearing price—no loss. If you don’t get filled, it means the market can’t offer the number you want, so you can save your capital to use elsewhere. Meanwhile, those little moves like “greed a bit more” and “squeeze a bit more” are exactly what most easily cause your funds to remain idle, or force you into a passive fill at the wrong interest rate.
Before bidding, what you truly should think about isn’t how to construct your bid—it’s three things: where the market’s most recent clearing price is, how long your capital can tolerate being idle, and what your true bottom line is. If you figure these three out, the number you bid won’t be a game—it will be an answer. This mechanism removes the “haggling” from lending. In ordinary markets, prices are pulled and tugged into place; here, everyone tells the truth at the same time. The line between whether you can get a good interest rate is simply whether you dare to speak honestly. #termmax
I didn’t believe it at first. Every market teaches people to “leave plenty of room” and “see what others bid first,” so you naturally should be cautious with auctions too. The result: I suffered a loss the very first time. Wanting to earn a bit more, I raised my bid above my psychological price. After one cycle, the funds never actually got matched—because the interest rate I wanted was too high, and the market couldn’t provide it. Having money sit idle is essentially a loss. $ACE
Once you understand the mechanism, it makes sense. TermMax is an auction with a unified clearing price. The final transaction price doesn’t follow your bid directly; it’s determined by the intersection point of all bids. The higher you bid, the more the clearing price won’t get pushed higher—if your bid is too far from the intersection point, you simply get eliminated. And the reverse is also true: if you set your bottom line too low, then when the clearing price lands between your bid and your bottom line, you’ll end up getting filled at an interest rate you never intended to accept. $BTW
So in this design, your real bottom line is the only correct bid. If you get filled, you receive the clearing price—no loss. If you don’t get filled, it means the market can’t offer the number you want, so you can save your capital to use elsewhere. Meanwhile, those little moves like “greed a bit more” and “squeeze a bit more” are exactly what most easily cause your funds to remain idle, or force you into a passive fill at the wrong interest rate.
Before bidding, what you truly should think about isn’t how to construct your bid—it’s three things: where the market’s most recent clearing price is, how long your capital can tolerate being idle, and what your true bottom line is. If you figure these three out, the number you bid won’t be a game—it will be an answer. This mechanism removes the “haggling” from lending. In ordinary markets, prices are pulled and tugged into place; here, everyone tells the truth at the same time. The line between whether you can get a good interest rate is simply whether you dare to speak honestly. #termmax