I’ve been looking at TermMax, and honestly, I think I was looking at it the wrong way at first.
It’s easy to see it as another fixed-rate lending protocol or an on-chain order book. But the part I find more interesting is Range Orders.
The idea is pretty simple: lenders can decide how borrowing rates change as their available liquidity gets used. So instead of treating every dollar of liquidity the same, pricing can change as the market gets deeper or thinner.
That makes sense because a small loan and a large loan don’t necessarily carry the same liquidity risk.
TermMax takes this further through different maturities and its FT, XT and GT structures. The goal seems to be making credit markets more programmable.
But there’s a catch. More flexibility can also mean more complexity and fragmented liquidity. And high TVL doesn’t automatically mean borrowers have deep, usable liquidity when they actually need it.
TermMax has around $34.1M in TVL, with $29.49M in active loans.
So I’m more interested in one question: when incentives disappear, can TermMax’s liquidity curves hold up when real borrowers show up, especially close to maturity?
@TermMax #TermMax
It’s easy to see it as another fixed-rate lending protocol or an on-chain order book. But the part I find more interesting is Range Orders.
The idea is pretty simple: lenders can decide how borrowing rates change as their available liquidity gets used. So instead of treating every dollar of liquidity the same, pricing can change as the market gets deeper or thinner.
That makes sense because a small loan and a large loan don’t necessarily carry the same liquidity risk.
TermMax takes this further through different maturities and its FT, XT and GT structures. The goal seems to be making credit markets more programmable.
But there’s a catch. More flexibility can also mean more complexity and fragmented liquidity. And high TVL doesn’t automatically mean borrowers have deep, usable liquidity when they actually need it.
TermMax has around $34.1M in TVL, with $29.49M in active loans.
So I’m more interested in one question: when incentives disappear, can TermMax’s liquidity curves hold up when real borrowers show up, especially close to maturity?
@TermMax #TermMax