Reading about @TermMax made me rethink how fixed-rate borrowing can be represented on-chain.
The protocol uses FT almost like a zero-coupon bond.
You don't just receive a floating claim. The FT represents a defined amount of the debt token that becomes redeemable at maturity.
Before maturity, it can trade at a discount.
That is a much cleaner way to think about the system than simply calling it “another lending protocol.”
The interesting question for me is whether secondary liquidity can stay deep enough for people who don't want to wait until maturity.
That’s where the theory meets reality.
The mechanics are cleAr, but markets always tell the real story.
#TermMax
The protocol uses FT almost like a zero-coupon bond.
You don't just receive a floating claim. The FT represents a defined amount of the debt token that becomes redeemable at maturity.
Before maturity, it can trade at a discount.
That is a much cleaner way to think about the system than simply calling it “another lending protocol.”
The interesting question for me is whether secondary liquidity can stay deep enough for people who don't want to wait until maturity.
That’s where the theory meets reality.
The mechanics are cleAr, but markets always tell the real story.
#TermMax
