I’ve tried to understand leveraged strategies from a user’s point of view, and honestly, the looping part is what makes them feel unnecessarily complicated. You borrow, use the borrowed funds to get more exposure, add that back as collateral, and then repeat the process.
That’s why the flash-loan approach in @TermMax caught my attention. The idea is not to change what leverage does, but to make the process of building that position less repetitive. The borrowed debt tokens can be used to increase exposure to the underlying collateral asset, while flash loans allow the required steps to happen within a single transaction.
I think that distinction is important. Flash loans don’t magically make a leveraged position safer, and the price risk is still there. What they can do is remove some of the manual work that normally comes with looping.
For me, that’s the practical side of #TermMax. Instead of making leverage another complicated sequence that users have to manage step by step, it tries to make the execution feel much more straightforward. #TermMax
That’s why the flash-loan approach in @TermMax caught my attention. The idea is not to change what leverage does, but to make the process of building that position less repetitive. The borrowed debt tokens can be used to increase exposure to the underlying collateral asset, while flash loans allow the required steps to happen within a single transaction.
I think that distinction is important. Flash loans don’t magically make a leveraged position safer, and the price risk is still there. What they can do is remove some of the manual work that normally comes with looping.
For me, that’s the practical side of #TermMax. Instead of making leverage another complicated sequence that users have to manage step by step, it tries to make the execution feel much more straightforward. #TermMax
