@TermMax used to think a loan just showed up as a number sitting in some account balance.
the more i looked at how TermMax actually structures a position, the less that held up.
a borrower locks collateral. TermMax mints a Gearing Token against it, an ERC-721, not a ledger entry. the debt token, the collateral token, and the maturity date are all fixed at the market level before that GT even exists.
the GT itself records exactly two things. how much collateral sits inside it. how many Fixed-Rate Tokens have been minted against that collateral, capped by the market's max loan-to-value. an MLTV of 0.8, for example, turns 1 ETH into up to 800 $USDC of mintable debt. #TermMax
no shared pool, no netting, no blended number anywhere in the design.
reread that isolation part twice. TermMax runs 100+ markets as of its March 2026 update, each one sealed off from the others, so one bad collateral price in one market never touches the GTs sitting in any other. not bookkeeping. a boundary.
repay with debt tokens directly, or buy back the FTs on the open market and hand those back instead. either way the GT closes and collateral releases, but it never merged with anyone else's numbers to begin with.
so borrowing on TermMax isn't one number that grows or shrinks. it's as many GTs as you've opened, each carrying its own collateral, its own debt, its own maturity, on its own.
does per-loan tracking make risk clearer, or just harder to manage at scale?
@TermMax #termmax
the more i looked at how TermMax actually structures a position, the less that held up.
a borrower locks collateral. TermMax mints a Gearing Token against it, an ERC-721, not a ledger entry. the debt token, the collateral token, and the maturity date are all fixed at the market level before that GT even exists.
the GT itself records exactly two things. how much collateral sits inside it. how many Fixed-Rate Tokens have been minted against that collateral, capped by the market's max loan-to-value. an MLTV of 0.8, for example, turns 1 ETH into up to 800 $USDC of mintable debt. #TermMax
no shared pool, no netting, no blended number anywhere in the design.
reread that isolation part twice. TermMax runs 100+ markets as of its March 2026 update, each one sealed off from the others, so one bad collateral price in one market never touches the GTs sitting in any other. not bookkeeping. a boundary.
repay with debt tokens directly, or buy back the FTs on the open market and hand those back instead. either way the GT closes and collateral releases, but it never merged with anyone else's numbers to begin with.
so borrowing on TermMax isn't one number that grows or shrinks. it's as many GTs as you've opened, each carrying its own collateral, its own debt, its own maturity, on its own.
does per-loan tracking make risk clearer, or just harder to manage at scale?
@TermMax #termmax