#termmax @TermMax Maturity is one of the parts of fixed-rate DeFi that I think gets overlooked.
A 1-week loan and a 1-year loan are not really the same product.
Short maturities give users more flexibility. Longer maturities give borrowers more certainty and make longer-term planning possible.
Once several maturities exist at the same time, you also start getting something more interesting: a term structure of onchain interest rates.
That means the market can price the cost of capital not only by asset, but also by time.
This is one of the more interesting parts of the @TermMax model to watch as liquidity grows.
A 1-week loan and a 1-year loan are not really the same product.
Short maturities give users more flexibility. Longer maturities give borrowers more certainty and make longer-term planning possible.
Once several maturities exist at the same time, you also start getting something more interesting: a term structure of onchain interest rates.
That means the market can price the cost of capital not only by asset, but also by time.
This is one of the more interesting parts of the @TermMax model to watch as liquidity grows.