@TermMax I keep looking at the liquidation side of DeFi, because that’s where many lending ideas get tested for real.
A protocol can offer attractive rates, but what happens when the market suddenly moves 30%?
TermMax has an interesting answer: physical delivery. In certain liquidation situations, collateral can be delivered to lenders instead of relying only on selling assets into a thin market. The design is also intended to make collateral such as lower-liquidity assets and some RWAs more workable.
I think this is one of the less flashy parts of TermMax, but probably one of the more important ones.
If liquidity disappears during a sharp move, simply saying “liquidate it” doesn’t guarantee the lender gets a fair recovery.
But physical delivery isn’t a magic shield either. The collateral itself can still lose value.
Would you trust physical delivery more than a traditional market liquidation during extreme volatility?
#TermMax
$GPS
$TUT
A protocol can offer attractive rates, but what happens when the market suddenly moves 30%?
TermMax has an interesting answer: physical delivery. In certain liquidation situations, collateral can be delivered to lenders instead of relying only on selling assets into a thin market. The design is also intended to make collateral such as lower-liquidity assets and some RWAs more workable.
I think this is one of the less flashy parts of TermMax, but probably one of the more important ones.
If liquidity disappears during a sharp move, simply saying “liquidate it” doesn’t guarantee the lender gets a fair recovery.
But physical delivery isn’t a magic shield either. The collateral itself can still lose value.
Would you trust physical delivery more than a traditional market liquidation during extreme volatility?
#TermMax
$GPS
$TUT
Bullish volatility 🟢
Bearish volatility 🔴
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