The Problem With Floating Interest Rates in DeFi
I think one of the biggest challenges with DeFi lending is not always the asset itself, but the uncertainty around borrowing costs.
You can enter a strategy when the interest rate looks good, but that rate can change later. If you're using leverage, even a small increase in borrowing costs can make the strategy much less attractive than it looked initially.
This is one reason I find @TermMax interesting. Its fixed-rate and fixed-term approach gives users a clearer idea of what they are getting into before starting a position.
For me, the main advantage isn't just having a fixed number. It's being able to plan with fewer surprises. DeFi will always have risk, but reducing one layer of uncertainty can make a big difference.
That predictability is one of the ideas I find most interesting about #TermMax
I think one of the biggest challenges with DeFi lending is not always the asset itself, but the uncertainty around borrowing costs.
You can enter a strategy when the interest rate looks good, but that rate can change later. If you're using leverage, even a small increase in borrowing costs can make the strategy much less attractive than it looked initially.
This is one reason I find @TermMax interesting. Its fixed-rate and fixed-term approach gives users a clearer idea of what they are getting into before starting a position.
For me, the main advantage isn't just having a fixed number. It's being able to plan with fewer surprises. DeFi will always have risk, but reducing one layer of uncertainty can make a big difference.
That predictability is one of the ideas I find most interesting about #TermMax