Today I want to put @TermMax into a very realistic multiple-choice question about funding options.
Suppose I have a certain amount of assets in hand, and there are three ideas:
First, I believe the price will go up, but I don’t want to hand all the risk over to a high-leverage position;
Second, I don’t have a clear direction for the moment—I just want to use the capital more efficiently;
Third, I need to borrow funds, and I hope the cost won’t change suddenly over the coming period.
These three situations actually correspond to three completely different needs.
Calls/puts solve “how I view direction”;
On the yield side, it solves “what to do with idle assets”;
Fixed-rate borrowing solves “how to plan the funding cost in advance.”
I think what’s interesting about TermMax is that it’s not trying to answer every question with a single product. Instead, it gives users different options depending on their situation.
Trading today doesn’t mean you have to trade tomorrow;
Being willing to take direction risk now doesn’t mean you can’t switch later to a more certain funding arrangement.
For me, a truly useful on-chain financial tool should let strategies change as the market and individual needs change, rather than locking users into a single way of playing.
So I continue to pay attention to the focus on #TermMax —whether it can make this “switchable funding choice” more and more natural.
Suppose I have a certain amount of assets in hand, and there are three ideas:
First, I believe the price will go up, but I don’t want to hand all the risk over to a high-leverage position;
Second, I don’t have a clear direction for the moment—I just want to use the capital more efficiently;
Third, I need to borrow funds, and I hope the cost won’t change suddenly over the coming period.
These three situations actually correspond to three completely different needs.
Calls/puts solve “how I view direction”;
On the yield side, it solves “what to do with idle assets”;
Fixed-rate borrowing solves “how to plan the funding cost in advance.”
I think what’s interesting about TermMax is that it’s not trying to answer every question with a single product. Instead, it gives users different options depending on their situation.
Trading today doesn’t mean you have to trade tomorrow;
Being willing to take direction risk now doesn’t mean you can’t switch later to a more certain funding arrangement.
For me, a truly useful on-chain financial tool should let strategies change as the market and individual needs change, rather than locking users into a single way of playing.
So I continue to pay attention to the focus on #TermMax —whether it can make this “switchable funding choice” more and more natural.