There’s a risk in DeFi that doesn’t show up on the token chart.

You can be right about the asset and still get the financing wrong.

Say you borrow against ETH expecting to hold the position for a few months.

You’re watching $ETH
You’re watching liquidation levels.
You’re watching volatility.

But your borrowing rate is moving underneath all of that.

If the rate changes, the cost of keeping the position changes too.

So now you’re managing two variables:

the asset you’re exposed to
and the price you’re paying for capital.

That’s what makes fixed-rate markets interesting to me.

@TermMax is building around the idea that borrowing costs don’t always have to remain a moving target.

In DeFi, predictable financing can be just as important as predictable returns.

#termmax @TermMax $LIT $AAVE #termmax