#termmax @TermMax
The more I read about @TermMax, the more I think FT is the piece people should understand first.
An FT represents a fixed claim on the debt token at maturity.
That sounds simple, but it changes the way lending can be represented. $TUT
A lender isn't just holding a position whose return depends on whatever the floating market rate happens to be later. The fixed maturity is part of the instrument itself. $HEMI
There is another useful detail here.
FTs can be held until maturity, but they can also be sold before maturity. So the fixed-term position doesn't necessarily mean the capital is locked with no secondary-market option. $ACE
The interesting question is then liquidity.
A fixed claim is useful only if there is a reasonable market around it when someone wants to exit early.
That's the part I'd watch closely.
The MECHANISM is clear. Market depth is the harder question.
The more I read about @TermMax, the more I think FT is the piece people should understand first.
An FT represents a fixed claim on the debt token at maturity.
That sounds simple, but it changes the way lending can be represented. $TUT
A lender isn't just holding a position whose return depends on whatever the floating market rate happens to be later. The fixed maturity is part of the instrument itself. $HEMI
There is another useful detail here.
FTs can be held until maturity, but they can also be sold before maturity. So the fixed-term position doesn't necessarily mean the capital is locked with no secondary-market option. $ACE
The interesting question is then liquidity.
A fixed claim is useful only if there is a reasonable market around it when someone wants to exit early.
That's the part I'd watch closely.
The MECHANISM is clear. Market depth is the harder question.