TermMax Fixed Interest Rate Mechanism
TermMax addresses the biggest problem of traditional DeFi protocols (Aave, Compound…): floating interest rates that constantly change according to supply and demand.
How it works:
Borrowers and lenders lock in both the interest rate and the term from the start.
Interest rates are determined through an AMM model inspired by Uniswap V3.
The market uses position tokenization:
FT (Fixed-rate Token): Similar to a zero-coupon bond. Lenders buy it at a discount and redeem the full face value at maturity → fixed yield.
XT (Yield Token): Represents the interest portion. Borrowers sell it to receive funds immediately and lock in their borrowing cost.
GT (Gearing Token): Tokenizes leveraged positions, enabling one-click looping.
Key features
Supports Range Orders and customizable pricing curves → more flexible liquidity.
Unmatched capital is automatically deployed to floating-rate protocols (Morpho, Aave, Venus…) to generate yield.
No unexpected liquidation risk like conventional leverage.
Users know exactly their borrowing costs or expected returns before participating, bringing the stability of traditional finance while retaining DeFi’s flexibility.
#termmax @TermMax
TermMax addresses the biggest problem of traditional DeFi protocols (Aave, Compound…): floating interest rates that constantly change according to supply and demand.
How it works:
Borrowers and lenders lock in both the interest rate and the term from the start.
Interest rates are determined through an AMM model inspired by Uniswap V3.
The market uses position tokenization:
FT (Fixed-rate Token): Similar to a zero-coupon bond. Lenders buy it at a discount and redeem the full face value at maturity → fixed yield.
XT (Yield Token): Represents the interest portion. Borrowers sell it to receive funds immediately and lock in their borrowing cost.
GT (Gearing Token): Tokenizes leveraged positions, enabling one-click looping.
Key features
Supports Range Orders and customizable pricing curves → more flexible liquidity.
Unmatched capital is automatically deployed to floating-rate protocols (Morpho, Aave, Venus…) to generate yield.
No unexpected liquidation risk like conventional leverage.
Users know exactly their borrowing costs or expected returns before participating, bringing the stability of traditional finance while retaining DeFi’s flexibility.
#termmax @TermMax