Most DeFi lending still works on floating rates. You lend, and the rate moves every block. You borrow, and you don't really know what you'll owe next month. I used to think this was just how crypto lending worked, until I looked closer at TermMax.
TermMax sets a fixed rate and a fixed end date (maturity) for every market. When you lend, you buy something called a Fixed-Rate Token (FT). You buy it at a discount now, and it pays out full value later. So if you buy an FT for $0.90 and it pays back $1.00 at maturity, your return is locked in from day one. No surprises, no guessing.
For borrowers it works the same way in reverse. You know your cost upfront. You're not watching rates creep up while you sleep.
What I find interesting is how simple the idea is once you see it. It's basically a zero-coupon bond, something that's existed in traditional finance for decades, just rebuilt on-chain. It's not flashy, but it solves a real problem: nobody can plan around numbers that change every minute.

Curious how many people using DeFi loans right now have actually thought about what a floating rate costs them long term.

#termmax @TermMax