Lately I’ve been thinking about a question: if you have an asset you don’t want to sell, but temporarily need USDC, besides selling it outright, are there other options?
In traditional finance, this scenario is actually very common. If you hold stocks, bonds, or other assets you don’t want to sell, you can use them as collateral to take out a loan. The assets stay in your custody, while you unlock some liquidity early to use it.
This is also the angle I’ve been quite interested in when looking at @TermMax . Its value isn’t necessarily only about “fixed-rate borrowing,” but rather enabling assets that would otherwise just sit there waiting for appreciation to start having financing utility.
This logic is very practical for me. For example, if you have a tokenized ETF you’re bullish on long term, but in the short term you need some funds to pursue other strategies. If you sell it directly, you’re essentially choosing to give up your original position; but if you can take out a collateralized loan, it becomes: “keep the position, use the cash first.”
Of course, this isn’t getting liquidity for free. You have to consider the collateral ratio, liquidation thresholds, oracles, and—most importantly—the liquidity of the collateral itself. Especially for tail-end assets: what looks stable during normal times is the real question—whether it can be liquidated smoothly in extreme market conditions. Fixed interest rates can make borrowing costs clearer, but they can’t eliminate collateral risk.
But what I think is truly worth looking at is that this direction turns on-chain assets from “only buy/sell” into “can be used for financing.”
Before, an asset’s possible uses were basically two: hold it, or sell it.
If the collateralized lending market matures, it will introduce a third option: you don’t have to sell, yet you can still release capital efficiency.
For long-term holders, this change is actually quite significant. Because sometimes what’s really painful isn’t that the asset price drops—it’s that you don’t even want to sell, but you’re forced to because you temporarily lack liquidity.
So next, when looking at TermMax, I’ll focus on how many truly in-demand collateral assets it can support, and whether these markets can withstand extreme conditions.
If this all works out, TermMax won’t just be for lending.
It’s about giving more and more on-chain assets “financing capabilities.”
#TermMax @TermMax
In traditional finance, this scenario is actually very common. If you hold stocks, bonds, or other assets you don’t want to sell, you can use them as collateral to take out a loan. The assets stay in your custody, while you unlock some liquidity early to use it.
This is also the angle I’ve been quite interested in when looking at @TermMax . Its value isn’t necessarily only about “fixed-rate borrowing,” but rather enabling assets that would otherwise just sit there waiting for appreciation to start having financing utility.
This logic is very practical for me. For example, if you have a tokenized ETF you’re bullish on long term, but in the short term you need some funds to pursue other strategies. If you sell it directly, you’re essentially choosing to give up your original position; but if you can take out a collateralized loan, it becomes: “keep the position, use the cash first.”
Of course, this isn’t getting liquidity for free. You have to consider the collateral ratio, liquidation thresholds, oracles, and—most importantly—the liquidity of the collateral itself. Especially for tail-end assets: what looks stable during normal times is the real question—whether it can be liquidated smoothly in extreme market conditions. Fixed interest rates can make borrowing costs clearer, but they can’t eliminate collateral risk.
But what I think is truly worth looking at is that this direction turns on-chain assets from “only buy/sell” into “can be used for financing.”
Before, an asset’s possible uses were basically two: hold it, or sell it.
If the collateralized lending market matures, it will introduce a third option: you don’t have to sell, yet you can still release capital efficiency.
For long-term holders, this change is actually quite significant. Because sometimes what’s really painful isn’t that the asset price drops—it’s that you don’t even want to sell, but you’re forced to because you temporarily lack liquidity.
So next, when looking at TermMax, I’ll focus on how many truly in-demand collateral assets it can support, and whether these markets can withstand extreme conditions.
If this all works out, TermMax won’t just be for lending.
It’s about giving more and more on-chain assets “financing capabilities.”
#TermMax @TermMax
