There’s a question I think is more worth using to judge a DeFi protocol than “what is the return rate?”
After market conditions change, will users still need it?
Take @TermMax as an example—the answer doesn’t depend only on whether the market is going up.
If the market is active, people who are bullish and bearish will still need Calls / Puts to express their views;
If volatility drops, borrowers still care about financing cost and term;
If users don’t want to trade frequently, whether assets can be utilized more efficiently is also a long-term need.
One thing that makes TermMax particularly interesting to me is that it takes into account demand across different market conditions, rather than designing a product only around one specific kind of行情.
In a bull market, trading opportunities may be the most eye-catching;
When markets are choppy, the importance of risk management increases;
And when funding demand remains persistent, a fixed interest rate provides another form of value.
So when I’m observing #TermMax now, I’m not as concerned with how hot it is on any single day—but rather, whether in any market regime, there are still people who are willing to use it.
If a protocol can achieve that, what it earns isn’t just short-term traffic, but truly recurring financial demand.
After market conditions change, will users still need it?
Take @TermMax as an example—the answer doesn’t depend only on whether the market is going up.
If the market is active, people who are bullish and bearish will still need Calls / Puts to express their views;
If volatility drops, borrowers still care about financing cost and term;
If users don’t want to trade frequently, whether assets can be utilized more efficiently is also a long-term need.
One thing that makes TermMax particularly interesting to me is that it takes into account demand across different market conditions, rather than designing a product only around one specific kind of行情.
In a bull market, trading opportunities may be the most eye-catching;
When markets are choppy, the importance of risk management increases;
And when funding demand remains persistent, a fixed interest rate provides another form of value.
So when I’m observing #TermMax now, I’m not as concerned with how hot it is on any single day—but rather, whether in any market regime, there are still people who are willing to use it.
If a protocol can achieve that, what it earns isn’t just short-term traffic, but truly recurring financial demand.