#termmax @TermMax
ngl I wennt down the TermMax vault rabbit hole earlier and the way most ppl read these things misses where the actual call gets made.
TermMax runs fixed-rate lending stacked with options exposure so the real numbers sit way below the headline. Right now TermMax USDC Vault V2 is sitting at $5.82M TVL with a displayed 4.36% APY and 75.7% utilization. That quietly means 24.3% of deposits arenot deployed. But tbh that idle capital is not fully wasted curators usually park it in baseline yield pools like Morpho or Aave so the drag isn't as bad as it looks.
Then there's how TermMax spreads capital around. Almost 69% of everything allocated is sitting inside just one market. And the LLTV tied to that bucket? 92%. Bruh that tells you more about where the danger sits than any advertised return ever could. But heres the catch TermMax loans are fixed-duration not open-ended like Aave. If that 92% LLTV is near expiry the risk drops hard. If it's fresh though, that's dangerous fr.
My checklist for any TermMax vault flipped completely. These days I go timelock first, then cap, then concentration, then LLTV plus maturity timeline, then secondary market liquidity. This one runs a $50M ceiling and a 24 hour timelock. But exit speed is nott guaranteed by timelock alone if you try pulling out before expiry during a crash you are selling on secondary markets with heavy slippage risk.
Fr I keep wondering if ppl still use APY as their opening filter or if their sequence changed once they watched how these vaults behave under stress.
ngl I wennt down the TermMax vault rabbit hole earlier and the way most ppl read these things misses where the actual call gets made.
TermMax runs fixed-rate lending stacked with options exposure so the real numbers sit way below the headline. Right now TermMax USDC Vault V2 is sitting at $5.82M TVL with a displayed 4.36% APY and 75.7% utilization. That quietly means 24.3% of deposits arenot deployed. But tbh that idle capital is not fully wasted curators usually park it in baseline yield pools like Morpho or Aave so the drag isn't as bad as it looks.
Then there's how TermMax spreads capital around. Almost 69% of everything allocated is sitting inside just one market. And the LLTV tied to that bucket? 92%. Bruh that tells you more about where the danger sits than any advertised return ever could. But heres the catch TermMax loans are fixed-duration not open-ended like Aave. If that 92% LLTV is near expiry the risk drops hard. If it's fresh though, that's dangerous fr.
My checklist for any TermMax vault flipped completely. These days I go timelock first, then cap, then concentration, then LLTV plus maturity timeline, then secondary market liquidity. This one runs a $50M ceiling and a 24 hour timelock. But exit speed is nott guaranteed by timelock alone if you try pulling out before expiry during a crash you are selling on secondary markets with heavy slippage risk.
Fr I keep wondering if ppl still use APY as their opening filter or if their sequence changed once they watched how these vaults behave under stress.