I have been looking more closely at @TermMax and its liquidation design has changed how I think about fixed-rate #DeFi .
What caught my attention is physical delivery. If a loan remains unpaid after the liquidation window, #TermMax can distribute both underlying and collateral tokens proportionally to Fixed-Rate Token holders instead of relying entirely on a market sale. That can reduce dependence on deep liquidity and makes lower-liquidity collateral more practical.
But I see a real trade-off. Receiving collateral directly doesn’t eliminate risk; it transfers more asset exposure to the lender. If that collateral is volatile or difficult to sell, recovery may still be challenging. #TermMax itself acknowledges this liquidation and market risk.
For my strategy, I’d treat physical delivery as a risk-management feature, not a guarantee. I’d want to study the collateral, LLTV, and liquidity before entering.
Would you prefer collateral delivery over forced market liquidation?
#Termmax @TermMax $BNB
What caught my attention is physical delivery. If a loan remains unpaid after the liquidation window, #TermMax can distribute both underlying and collateral tokens proportionally to Fixed-Rate Token holders instead of relying entirely on a market sale. That can reduce dependence on deep liquidity and makes lower-liquidity collateral more practical.
But I see a real trade-off. Receiving collateral directly doesn’t eliminate risk; it transfers more asset exposure to the lender. If that collateral is volatile or difficult to sell, recovery may still be challenging. #TermMax itself acknowledges this liquidation and market risk.
For my strategy, I’d treat physical delivery as a risk-management feature, not a guarantee. I’d want to study the collateral, LLTV, and liquidity before entering.
Would you prefer collateral delivery over forced market liquidation?
#Termmax @TermMax $BNB