#TermMax @TermMax
There’s one angle in TermMax that I find more valuable than the usual “fixed APR” story.
If I borrow at a fixed 8%, while the collateral is generating a 12% fixed yield, those two numbers stop mattering on their own. What starts to matter is the 4% spread between yield and cost of capital.
TermMax allows the borrowing cost to be locked in, and if the collateral is a fixed-rate asset such as PT, the yield side can also become more predictable. When both sides are clearer, a leveraged strategy no longer depends only on hoping that “yield stays above borrowing cost.” $TMX
That’s the part I find more interesting about #TermMax. Fixed-rate borrowing doesn’t just create certainty around debt it can make cost of capital clear enough to build a strategy around.
DeFi often asks: how much yield? But once the price of borrowed capital is fixed, the better question may be: after cost of capital, how much do I actually keep?
$AIO
$VELVET
$ACE
There’s one angle in TermMax that I find more valuable than the usual “fixed APR” story.
If I borrow at a fixed 8%, while the collateral is generating a 12% fixed yield, those two numbers stop mattering on their own. What starts to matter is the 4% spread between yield and cost of capital.
TermMax allows the borrowing cost to be locked in, and if the collateral is a fixed-rate asset such as PT, the yield side can also become more predictable. When both sides are clearer, a leveraged strategy no longer depends only on hoping that “yield stays above borrowing cost.” $TMX
That’s the part I find more interesting about #TermMax. Fixed-rate borrowing doesn’t just create certainty around debt it can make cost of capital clear enough to build a strategy around.
DeFi often asks: how much yield? But once the price of borrowed capital is fixed, the better question may be: after cost of capital, how much do I actually keep?
$AIO
$VELVET
$ACE