Today I want to look at @TermMax from the perspective of “time.”
Many on-chain transactions are essentially betting against time.
Borrowers worry about how future interest rates may change;
traders worrying about whether the market will reach their expected levels before their positions get affected by short-term volatility;
and holders consider whether assets can generate additional value while simply sitting there.
TermMax’s different product types neatly address each of these concerns.
Fixed-rate lending lets users lock in the funding cost for a future period in advance; Call / Put allows users—when expressing a bullish or bearish view—to plan the cost they’re willing to pay for the trade more clearly; and asset providers find opportunities to earn returns by leveraging the time they hold assets.
So I think #TermMax is particularly interesting in that it doesn’t try to predict the future, but helps users deal with future uncertainty in advance.
No one can guarantee how the market will ultimately move. But whether costs can be known ahead of time, whether risk can be assessed in advance, and whether idle assets can be used more effectively—those are things products can improve.
For me, a good DeFi tool doesn’t necessarily make users profit more every time, but it should make each decision easier to calculate.
Many on-chain transactions are essentially betting against time.
Borrowers worry about how future interest rates may change;
traders worrying about whether the market will reach their expected levels before their positions get affected by short-term volatility;
and holders consider whether assets can generate additional value while simply sitting there.
TermMax’s different product types neatly address each of these concerns.
Fixed-rate lending lets users lock in the funding cost for a future period in advance; Call / Put allows users—when expressing a bullish or bearish view—to plan the cost they’re willing to pay for the trade more clearly; and asset providers find opportunities to earn returns by leveraging the time they hold assets.
So I think #TermMax is particularly interesting in that it doesn’t try to predict the future, but helps users deal with future uncertainty in advance.
No one can guarantee how the market will ultimately move. But whether costs can be known ahead of time, whether risk can be assessed in advance, and whether idle assets can be used more effectively—those are things products can improve.
For me, a good DeFi tool doesn’t necessarily make users profit more every time, but it should make each decision easier to calculate.