I didn't fully understand what a maturity date meant in DeFi lending until I had to think about what happens when one expires. In traditional finance it's straightforward the bond matures, you get your principal back.
TermMax works similarly on paper. You lend at a fixed rate, the position matures on a set date, and you receive face value. The question I kept asking is what happens if the borrower's collateral drops sharply right before maturity.
Most lending protocols handle this through liquidation. TermMax runs the same logic undercollateralized positions get liquidated before the date hits.
What I haven't seen tested publicly is how the protocol behaves when multiple large positions approach maturity simultaneously in a falling market. That specific scenario is where fixed-rate mechanics either hold or break.
#termmax @TermMax
TermMax works similarly on paper. You lend at a fixed rate, the position matures on a set date, and you receive face value. The question I kept asking is what happens if the borrower's collateral drops sharply right before maturity.
Most lending protocols handle this through liquidation. TermMax runs the same logic undercollateralized positions get liquidated before the date hits.
What I haven't seen tested publicly is how the protocol behaves when multiple large positions approach maturity simultaneously in a falling market. That specific scenario is where fixed-rate mechanics either hold or break.
#termmax @TermMax