I find interesting is how borrowing positions are structured in TermMax.
When a borrower locks collateral into a Gearing Token (GT), TermMax issues Fixed-Rate Tokens (FTs) based on the market’s maximum LTV. The FT represents the debt obligation, while the GT records the collateral and debt.
That made me look at TermMax differently:
The collateral and debt are represented through separate on-chain components rather than one simple loan balance.
Another detail matters here:
If collateral value falls enough for the position’s LTV to reach the liquidation threshold, liquidation can be triggered.
The real part I want to watch is how these positions behave when collateral prices move quickly.
#termmax @TermMax
When a borrower locks collateral into a Gearing Token (GT), TermMax issues Fixed-Rate Tokens (FTs) based on the market’s maximum LTV. The FT represents the debt obligation, while the GT records the collateral and debt.
That made me look at TermMax differently:
The collateral and debt are represented through separate on-chain components rather than one simple loan balance.
Another detail matters here:
If collateral value falls enough for the position’s LTV to reach the liquidation threshold, liquidation can be triggered.
The real part I want to watch is how these positions behave when collateral prices move quickly.
#termmax @TermMax