#termmax $GPS $JCT $TREE @TermMax
i keep thinking if my TermMax debt says 1,000 USDC, then getting rid of it should cost me 1,000 USDC.
like there is a Gearing Token (GT) sitting there carrying the collateral and the debt. number says 1,000. TermMax maturity still coming. pretty hard number to argue with.
except apparently i can argue with the price of the thing that cancels it.
because the lender Fixed-Rate Token (FT) can be trading below its face value before maturity.
so wait, if 1,000 FT is the claim against that TermMax debt at maturity, but the market is letting me buy those FT for less than 1,000 USDC right now... why would i repay the GT with the full debt token amount instead?
that is where my brain keeps getting stuck.
the GT debt itself didn't shrink. TermMax didn't quietly rewrite what i owe. maturity didn't move either.
“the debt stayed fixed. buying the FT didn’t.”
i can go into the TermMax FT market, buy that claim below face value, then return the FT against the same GT debt.
and somehow 950 USDC spent on FT can erase more debt than 950 USDC would erase if i just stared at the GT number literally.
so what was fixed here? the debt obligation, yeah. apparently not the market cost of buying the FT that can take that debt off the GT and move me closer to getting the collateral back.
TermMax can still show 1,000 on the GT while the FT market is sitting there below it.
i keep thinking if my TermMax debt says 1,000 USDC, then getting rid of it should cost me 1,000 USDC.
like there is a Gearing Token (GT) sitting there carrying the collateral and the debt. number says 1,000. TermMax maturity still coming. pretty hard number to argue with.
except apparently i can argue with the price of the thing that cancels it.
because the lender Fixed-Rate Token (FT) can be trading below its face value before maturity.
so wait, if 1,000 FT is the claim against that TermMax debt at maturity, but the market is letting me buy those FT for less than 1,000 USDC right now... why would i repay the GT with the full debt token amount instead?
that is where my brain keeps getting stuck.
the GT debt itself didn't shrink. TermMax didn't quietly rewrite what i owe. maturity didn't move either.
“the debt stayed fixed. buying the FT didn’t.”
i can go into the TermMax FT market, buy that claim below face value, then return the FT against the same GT debt.
and somehow 950 USDC spent on FT can erase more debt than 950 USDC would erase if i just stared at the GT number literally.
so what was fixed here? the debt obligation, yeah. apparently not the market cost of buying the FT that can take that debt off the GT and move me closer to getting the collateral back.
TermMax can still show 1,000 on the GT while the FT market is sitting there below it.
