I kept coming back to one thing while clicking through TermMax: the interest rate doesn't feel like a number you simply accept. It starts looking more like something you can actually place an order around.
That changes the decision a bit.
With fixed-rate borrowing, I can see the maturity and rate before committing capital. If the available terms don't make sense, there isn't much reason to force the trade. I'd rather wait for a better match than take a floating rate and hope conditions stay friendly.
The interesting part is the orderbook idea underneath this. TermMax already has more than $90M in TVL and around $22M in active loans, so there is at least some real capital sitting behind the mechanism.
But liquidity is where I still hesitate.
A rate can be attractive on paper and still be useless if there isn't enough matching liquidity at the maturity I want. That's very different from looking at a lending pool where liquidity is generally just sitting there waiting.
The product makes me think less about “what's the current APY?” and more about “what rate can I actually get matched at?”
That feels closer to trading a financial term than simply borrowing from a pool.
The question is whether enough borrowers and lenders show up at the same maturities to make that market feel consistently alive.
#termmax @TermMax
That changes the decision a bit.
With fixed-rate borrowing, I can see the maturity and rate before committing capital. If the available terms don't make sense, there isn't much reason to force the trade. I'd rather wait for a better match than take a floating rate and hope conditions stay friendly.
The interesting part is the orderbook idea underneath this. TermMax already has more than $90M in TVL and around $22M in active loans, so there is at least some real capital sitting behind the mechanism.
But liquidity is where I still hesitate.
A rate can be attractive on paper and still be useless if there isn't enough matching liquidity at the maturity I want. That's very different from looking at a lending pool where liquidity is generally just sitting there waiting.
The product makes me think less about “what's the current APY?” and more about “what rate can I actually get matched at?”
That feels closer to trading a financial term than simply borrowing from a pool.
The question is whether enough borrowers and lenders show up at the same maturities to make that market feel consistently alive.
#termmax @TermMax