The dirty secret of DeFi is that if you've ever been puzzled as to why large crypto whales and institutional funds are able to cope so easily with bear markets and volatility, it's because they don't follow the same rules as the typical retail investor. Whereas ordinary users depend on unpredictable liquidity pools with variable rates, whales instead arrange fixed-rate loans and secure guaranteed returns through private Over-The-Counter (OTC) desks. They manage to lock in capital costs and hedge risk, while retail traders end up taking the brunt of market volatility.
The disadvantage ordinary users face in first-generation pools is that they have to accept what the algorithms decide. Suppose you put your Ethereum into a pool advertising a 20% APY; you may find the rate drops to 2% when large investors pour large amounts of liquidity into the pool. On the other hand, if you are borrowing, a sharp increase in the pool's usage can cause your interest rates to spike and push your positions into the liquidation zone. It is the retail users who suffer from this fundamental inefficiency.
@TermMax is working to bring smart money strategies within reach of ordinary people. By means of completely decentralised, fixed-rate, fixed-term money markets, it removes the imbalance by giving individual users the 'Whale Advantage'. Nowadays, you don't need millions of dollars or have access to a private OTC desk in order to obtain institutional-quality stability.
* Everyone gets guaranteed returns: Using TermMax, any user is able to place their assets into fixed-term contracts, for example 30, 60, or 90 days. The annual percentage yield that you see on day one is the return that you will get when the contract matures. Your yield will not be reduced because larger participants join the pool after you.
* When it comes to borrowing, with @TermMax traders can now do so with complete certainty. Since your cost of capital is fixed for the entire length of the loan, you are fully protected against sudden spikes in algorithmic interest rates and against unfair liquidations.
Making options and risk management available to all means whales no longer leave their portfolios vulnerable to catastrophic market crashes; instead, they use complex options strategies to hedge. Because @TermMax has its own options market, everyone can now access this kind of risk management. Users can buy put options to protect their collateral against sudden drops while still participating in lending markets.
Cease acting at a disadvantage and provide your portfolio with the same tools that the whales do. Secure your yields, hedge your risks, and trade with complete confidence by using @TermMax.