#termmax @TermMax

The oracle layer is something I would pay close attention to when studying @TermMax
Fixed-rate lending may sound mostly like a pricing problem, but collateralized positions still depend on accurate market information.
If collateral prices move, the protocol needs reliable information to determine the health of positions.
That means oracle design becomes part of the risk model.
This is easy to forget when looking at the more visible parts of DeFi.
A nice interface and a clever pricing curve don't matter much if the underlying price data becomes unreliable.
For a leveraged position, even a temporary pricing problem can have serious consequences.
That's why I tend to separate protocol mechanics into two questions:
How does the financial instrument work?
And what information does the system need to trust in order to operate it?
@TermMax has interesting answers to the first question.
The second one deserves just as much attention.
#TermMax
$ENA