On the 25th of #termmax @TermMax 8, TermMax is finally set to go live officially. Brothers who’ve been doing tasks along the way—remember to set your alarms.
Honestly, I used to be pretty skeptical about fixed-rate lending. The old-timers in the circle all know this—we’re all used to floating-rate setups, and at most we use forward contracts to hedge once in a while. Who would really lock money into a fixed interest rate? So when @TermMax first started to show up, I even made a bet with a friend that this project would pivot to floating rates within six months. Turns out I got slapped a bit. Then I recently looked at the data, and it pretty much froze me: daily active addresses are steady around 4,000, and on Token Terminal its ranking even surpasses Morpho. Back in March, it surged to second place—right behind Aave. The official roadmap says TVL passed 100 million in May, and I checked DeFiLlama as a quick sanity check, and real-time it’s only around 32 million. Those numbers don’t match, which makes me a little uneasy—but with the user base and the momentum it has, I can’t really argue.
At its core, this is a lending AMM. It basically takes Uniswap V3’s design and tweaks it: one debt position is split into three parts. FT is like a zero-coupon bond—you buy it at a discount, redeem for face value at maturity, and the interest is locked in end to end. XT is just the “difference filler”: 1 FT plus 1 XT always equals 1 debt token, and XT goes to zero at maturity. GT is the most interesting—it’s directly structured as an NFT, bundling collateral and debt together, making one-click leverage possible. Borrowers mint FT by locking collateral and sell it for funds. Lenders buy FT to receive the fixed interest. The interest rate is determined purely by range orders matching on the market—so the market calls the shots.
Liquidations are pretty straightforward too: if LTV exceeds the limit or it isn’t repaid at maturity, you get a two-hour window. The liquidator takes a 5% reward, and the borrower gets hit with a 10% penalty. If nobody intervenes, it settles via physical delivery: the collateral is transferred directly to the lender.
What surprised me most is that it even supports Ondo’s tokenized stock setup as collateral. I used to hold an NVDA position and wanted to add a bit of leverage—Aave and Morpho wouldn’t accept it, so I could only stare blankly. Now you can deposit it directly and borrow against it to unlock liquidity. The trust layer is a little longer than fully on-chain assets, but at least the door has been opened.
Now we just wait for the TGE, and see whether FT, XT, and GT can all build up their depth at the same time. If trading can be genuinely smooth, then maybe this fixed-rate lane really can run and make a name for itself.
Honestly, I used to be pretty skeptical about fixed-rate lending. The old-timers in the circle all know this—we’re all used to floating-rate setups, and at most we use forward contracts to hedge once in a while. Who would really lock money into a fixed interest rate? So when @TermMax first started to show up, I even made a bet with a friend that this project would pivot to floating rates within six months. Turns out I got slapped a bit. Then I recently looked at the data, and it pretty much froze me: daily active addresses are steady around 4,000, and on Token Terminal its ranking even surpasses Morpho. Back in March, it surged to second place—right behind Aave. The official roadmap says TVL passed 100 million in May, and I checked DeFiLlama as a quick sanity check, and real-time it’s only around 32 million. Those numbers don’t match, which makes me a little uneasy—but with the user base and the momentum it has, I can’t really argue.
At its core, this is a lending AMM. It basically takes Uniswap V3’s design and tweaks it: one debt position is split into three parts. FT is like a zero-coupon bond—you buy it at a discount, redeem for face value at maturity, and the interest is locked in end to end. XT is just the “difference filler”: 1 FT plus 1 XT always equals 1 debt token, and XT goes to zero at maturity. GT is the most interesting—it’s directly structured as an NFT, bundling collateral and debt together, making one-click leverage possible. Borrowers mint FT by locking collateral and sell it for funds. Lenders buy FT to receive the fixed interest. The interest rate is determined purely by range orders matching on the market—so the market calls the shots.
Liquidations are pretty straightforward too: if LTV exceeds the limit or it isn’t repaid at maturity, you get a two-hour window. The liquidator takes a 5% reward, and the borrower gets hit with a 10% penalty. If nobody intervenes, it settles via physical delivery: the collateral is transferred directly to the lender.
What surprised me most is that it even supports Ondo’s tokenized stock setup as collateral. I used to hold an NVDA position and wanted to add a bit of leverage—Aave and Morpho wouldn’t accept it, so I could only stare blankly. Now you can deposit it directly and borrow against it to unlock liquidity. The trust layer is a little longer than fully on-chain assets, but at least the door has been opened.
Now we just wait for the TGE, and see whether FT, XT, and GT can all build up their depth at the same time. If trading can be genuinely smooth, then maybe this fixed-rate lane really can run and make a name for itself.