Lately, I’ve seen many people asking: What exactly are @TermMax FT, GT, and XT?
In simple terms, TermMax breaks a single fixed-rate loan into 3 different tokens: FT, GT, and XT.
👉 FT (Fixed-rate yield)
FT represents the fixed-rate yield. You can buy it below face value and redeem it 1:1 at maturity. The difference between the purchase price and the maturity value is your profit.
👉 XT (Interest obligation)
XT represents the interest portion of the loan. Simply put, it’s the fixed interest that needs to be paid for the loan.
👉 GT (Leveraged position)
GT represents the debt position and leverage information. It basically tracks the leveraged position created using collateral.
Here’s a simple example:
Suppose you use ETH as collateral to borrow 1,000 USDC.
In this case:
• GT → represents your leveraged ETH position
• XT → represents the fixed interest you need to pay
• FT → someone could buy it for, say, 950 USDC, and receive 1,000 USDC at maturity
So, one fixed-rate loan is essentially split into these 3 components.
I think this design makes fixed-rate lending more flexible and tradable on-chain.
#termmax @TermMax
In simple terms, TermMax breaks a single fixed-rate loan into 3 different tokens: FT, GT, and XT.
👉 FT (Fixed-rate yield)
FT represents the fixed-rate yield. You can buy it below face value and redeem it 1:1 at maturity. The difference between the purchase price and the maturity value is your profit.
👉 XT (Interest obligation)
XT represents the interest portion of the loan. Simply put, it’s the fixed interest that needs to be paid for the loan.
👉 GT (Leveraged position)
GT represents the debt position and leverage information. It basically tracks the leveraged position created using collateral.
Here’s a simple example:
Suppose you use ETH as collateral to borrow 1,000 USDC.
In this case:
• GT → represents your leveraged ETH position
• XT → represents the fixed interest you need to pay
• FT → someone could buy it for, say, 950 USDC, and receive 1,000 USDC at maturity
So, one fixed-rate loan is essentially split into these 3 components.
I think this design makes fixed-rate lending more flexible and tradable on-chain.
#termmax @TermMax