After finishing the mechanism documents for @TermMax , I found myself starting to read the phrase “fixed interest rate” seriously—how exactly it ends up in the protocol.
What really made me pause was the linkage between GT, FT, XT, and Range Order. First, the borrower locks the collateral into GT, and GT records the collateral and the debt. Then, according to the market MLTV cap, FT is issued. FT is then split into the principal part and the interest part. The borrower sells the interest part to a Lending Range Order in exchange for XT, and then uses XT together with the principal part to redeem the debt token. Only at this point did I realize that a fixed interest rate isn’t merely an APR number—it’s implemented throughout the entire asset structure.
The Range Order is the part I think is most worth studying. It doesn’t just present a single APR; instead, it forms a pricing curve from a series of continuous orders, where different rate tiers correspond to different ranges. As orders gradually get filled, the actually matched interest rate moves along the curve. For me, that’s what makes TermMax interesting: the fixed term and fixed borrowing cost don’t stay as a single parameter—they are tied to the depth of funds filled.
At normal maturity, the borrower repays the entire debt, and FT holders receive the repayment at maturity based on their FT holdings. If liquidation fails, it goes into Physical Delivery, where the lender receives the collateral in physical form.
By the time I got this far, my understanding of @TermMax became clearer too: what’s truly worth breaking down isn’t simply “whether there is a fixed interest rate,” but how the fixed interest rate is built into a complete on-chain trading and settlement mechanism.
#termmax @TermMax
What really made me pause was the linkage between GT, FT, XT, and Range Order. First, the borrower locks the collateral into GT, and GT records the collateral and the debt. Then, according to the market MLTV cap, FT is issued. FT is then split into the principal part and the interest part. The borrower sells the interest part to a Lending Range Order in exchange for XT, and then uses XT together with the principal part to redeem the debt token. Only at this point did I realize that a fixed interest rate isn’t merely an APR number—it’s implemented throughout the entire asset structure.
The Range Order is the part I think is most worth studying. It doesn’t just present a single APR; instead, it forms a pricing curve from a series of continuous orders, where different rate tiers correspond to different ranges. As orders gradually get filled, the actually matched interest rate moves along the curve. For me, that’s what makes TermMax interesting: the fixed term and fixed borrowing cost don’t stay as a single parameter—they are tied to the depth of funds filled.
At normal maturity, the borrower repays the entire debt, and FT holders receive the repayment at maturity based on their FT holdings. If liquidation fails, it goes into Physical Delivery, where the lender receives the collateral in physical form.
By the time I got this far, my understanding of @TermMax became clearer too: what’s truly worth breaking down isn’t simply “whether there is a fixed interest rate,” but how the fixed interest rate is built into a complete on-chain trading and settlement mechanism.
#termmax @TermMax