FIXED ≠ LOCKED

One of the things that’s easy to misunderstand in fixed-rate DeFi:

fixed rate ≠ necessarily “hold until the end.”

In TermMax, a fixed-rate position can have its own market value up to maturity.

That means there are two different things:

FIXED RATE
→ the terms under which the position was created

MARKET VALUE
→ the price at which the position can be valued or traded up to maturity

This is where the secondary market comes in.

You don’t necessarily have to wait for the maturity date to get a way to exit the position.

This is an important point for fixed-income DeFi:

a fixed-rate product can have
both predictable yield
and market liquidity.

So:

FIXED ≠ FROZEN

And that’s what makes a fixed-rate position far more interesting than just a “deposit with an interest rate.”

#termmax @TermMax