I am incredibly proud of seeing term max graduate from Yzi Labs (fka Binance Labs) EASY Residency Season 3! The season attracted brilliant early-stage builders spanning the Web 3, AI and frontier technology space. I think Demo day held in Computer history museum in Mtn View, California this year at Mtn view would be a good endpoint for the season for many to me.
The valuable insights which I thought was discussed at length during Easy Residency will remain the most enjoyable ones for me (e.g. On-chain market structure, AI Agents, tokenized RWA, prediction markets, privacy as well as programmable infra).
I feel like term max would be a DeFi borrowing and lending protocols that fixed interests in stacks of on-chain money markets, as the selected participant and a graduate, it is an important milestone to me as it validates Term Max’s architectural integrity and vision towards a financial world with full transparency.
The most thrilling element for me on this part of the journey is not just on passing an internship or graduation, but seeing the term max climb towards a better on-chain future!
One of the greatest limitations of any traditional DeFi platform without TermMax is the use of fluctuating rates on both lending and borrowing.
These changes in market rates create a high degree of volatility and make it very difficult for participants to predict their profits or losses.
This affects borrower payments because if the borrowing rate changes, payments increase/decrease according to market rate, whereas, if the lending rate decreases/increases, yield of that borrower is drastically impacted.
Borrowers are never able to predict the amounts they will have to repay, and borrowers can’t predict the amounts they will receive back when loan matures.
TermMax proposes a solution where in it allows you to fix the rates for both the borrowing and lending sides. This helps borrowers know precisely how much they would need to pay when the loan is matured.
Simultaneously it also provides certainty to lenders about the amounts they would receive when the loan expires, regardless of the change in the market rate. #termmax @TermMax
With its unique fixed-rate tokenization method, TermMax is changing borrowing and lending in decentralized finance (DeFi). It employs specific tokens and smart contract mechanisms to give lenders consistent, fixed income and borrowers transparent, dynamic borrowing rates.
In this section, we’ll explain in depth the underlying technology-the tokens and processes-that enable TermMax’s innovative fixed-rate tokenization, so you will fully know how TermMax works.
In each fixed-rate borrowing and lending market at TermMax, there are 3 main constituents that determine the borrowing and lending conditions:
1) Debt Token: The loan commodity - such as USDC, where all lent loans or received collateral funds of loan exist.
2) Collateral Token: It is collateral put by the lender to fully secure her lending -such as ETH. The loan-to-collateral is always over-collateralization, which guarantees lender’s risk at the minimum level.
3) Maturity Date: When would the lender be entitled to the capital and reward from her lending to claim her funds back, which is also the time the lender must pay her loan to the lender. @TermMax #TermMax
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