On the 25th, TermMax is launched. Can an FDV of over 100 million hold up?
Recently, the discussion around TermMax has been quite interesting. A lot of people have started calculating the FDV, and the general conclusion is: pure lending cannot support a so-large market cap.
This view is certainly valid when you look only at the two words “lending.”
Lending is a low-frequency business. A loan can sit for half a year without moving. The fees collected are small, and turnover can’t be compared to DEX. If you apply DEX logic to lending, the numbers won’t look good no matter how you calculate them.
The problem is that what TermMax is doing is no longer just “lending.”
Fixed-rate, at its core, is a rate market. Borrowers want certainty, and savers also want certainty—both sides are coming with the mindset of “locking in.” This kind of demand naturally carries hedging and risk-management characteristics, which institutions recognize as valuable. It has opened institutional-grade facilities on the Canton Network, aiming directly at institutional capital.
On top of that, there’s the looping leverage strategy—one of the most profitable models in DeFi. Borrowing fees and trading/transaction fees are real, direct sources of income.
Now look at the cards it already has: 10 chains, $90M+ TVL, institutional endorsements from four firms—Cumberland, HashKey Capital, decimafund, and MZ_Cryptos—and Binance Wallet has even specifically opened a Booster for it. These things have already happened; there’s no need to wait.
And it’s already confirmed to be a project incubated by yzilabs. All kinds of signals suggest the potential is still extremely large.
Whether FDV can hold up ultimately comes down to a matter of time. The bears focus on the label “lending,” while the bulls are looking at the data that’s already running. The answer isn’t in the comments—it’s in the next six months. #termmax @TermMax
Recently, the discussion around TermMax has been quite interesting. A lot of people have started calculating the FDV, and the general conclusion is: pure lending cannot support a so-large market cap.
This view is certainly valid when you look only at the two words “lending.”
Lending is a low-frequency business. A loan can sit for half a year without moving. The fees collected are small, and turnover can’t be compared to DEX. If you apply DEX logic to lending, the numbers won’t look good no matter how you calculate them.
The problem is that what TermMax is doing is no longer just “lending.”
Fixed-rate, at its core, is a rate market. Borrowers want certainty, and savers also want certainty—both sides are coming with the mindset of “locking in.” This kind of demand naturally carries hedging and risk-management characteristics, which institutions recognize as valuable. It has opened institutional-grade facilities on the Canton Network, aiming directly at institutional capital.
On top of that, there’s the looping leverage strategy—one of the most profitable models in DeFi. Borrowing fees and trading/transaction fees are real, direct sources of income.
Now look at the cards it already has: 10 chains, $90M+ TVL, institutional endorsements from four firms—Cumberland, HashKey Capital, decimafund, and MZ_Cryptos—and Binance Wallet has even specifically opened a Booster for it. These things have already happened; there’s no need to wait.
And it’s already confirmed to be a project incubated by yzilabs. All kinds of signals suggest the potential is still extremely large.
Whether FDV can hold up ultimately comes down to a matter of time. The bears focus on the label “lending,” while the bulls are looking at the data that’s already running. The answer isn’t in the comments—it’s in the next six months. #termmax @TermMax