#termmax @TermMax
i keep thinking if i hold a TermMax Fixed-Rate Token (FT) for USDC until maturity, then maturity should end with USDC.
that feels like the whole point of holding the claim.
FT sits there carrying the principal plus fixed return toward that TermMax maturity date. so if the borrower doesn't repay on time... okay, bad. but surely TermMax just keeps trying to recover the USDC somehow.
except then Physical Delivery shows up.
and this is where my brain starts fighting it.
because TermMax doesn't jump straight from missed repayment to handing me collateral. there is still the liquidation path first, a window where the borrower position can be cleared.
but what if that doesn't clear everything?
what if some debt is still sitting there after liquidation.
“same FT. different thing behind redemption.”
apparently Physical Delivery can move remaining collateral into the TermMax redemption side instead of pretending the missing USDC somehow exists.
so now my FT can redeem against a pool containing debt token plus collateral.
wait... i held FT expecting USDC. how did ETH get into my maturity claim.
and my original FT didn't change halfway through.
it was still sitting there while repayment missed, liquidation couldn't make the USDC whole... and somehow collateral ended up behind the same TermMax redemption.
that is the part i keep getting stuck on.
same FT in my wallet the whole time.
but by the time i redeem it, apparently USDC might not be the only thing waiting on the other side.
i keep thinking if i hold a TermMax Fixed-Rate Token (FT) for USDC until maturity, then maturity should end with USDC.
that feels like the whole point of holding the claim.
FT sits there carrying the principal plus fixed return toward that TermMax maturity date. so if the borrower doesn't repay on time... okay, bad. but surely TermMax just keeps trying to recover the USDC somehow.
except then Physical Delivery shows up.
and this is where my brain starts fighting it.
because TermMax doesn't jump straight from missed repayment to handing me collateral. there is still the liquidation path first, a window where the borrower position can be cleared.
but what if that doesn't clear everything?
what if some debt is still sitting there after liquidation.
“same FT. different thing behind redemption.”
apparently Physical Delivery can move remaining collateral into the TermMax redemption side instead of pretending the missing USDC somehow exists.
so now my FT can redeem against a pool containing debt token plus collateral.
wait... i held FT expecting USDC. how did ETH get into my maturity claim.
and my original FT didn't change halfway through.
it was still sitting there while repayment missed, liquidation couldn't make the USDC whole... and somehow collateral ended up behind the same TermMax redemption.
that is the part i keep getting stuck on.
same FT in my wallet the whole time.
but by the time i redeem it, apparently USDC might not be the only thing waiting on the other side.