#termmax $BOME $MAGMA $BTW @TermMax
i keep thinking if i lend USDC through TermMax and end up holding a Fixed-Rate Token (FT), then whatever happens later should still end with USDC.
that is the claim, right? Borrowers take the debt, a Gearing Token (GT) keeps the collateral and debt position, and my FT is sitting on the lender side waiting on maturity. so where exactly does somebody else’s collateral enter my wallet.
apparently it can.
because TermMax Physical Delivery sits behind the case where liquidation still doesn’t fully cover what FT holders are owed. and then the FT holder can end up with a proportional piece of that collateral instead.
“same claim. different thing coming back.”
and yeah, that bothers me more than liquidation itself.
because the TermMax FT did not suddenly stop being the maturity claim. the borrower’s GT did not magically become mine either. but once TermMax reaches Physical Delivery, some of the collateral sitting behind that GT can become what settles my side.
so was i lending USDC, or accepting the possibility of owning the collateral if the bad path gets bad enough?
and yeah TMX Token governance can shape risk parameters around a TermMax Market, but that still doesn’t turn Physical Delivery back into USDC.
that part is weird.
i was staring at the FT like the ending was already named USDC.
apparently TermMax Physical Delivery never promised me that part.
i keep thinking if i lend USDC through TermMax and end up holding a Fixed-Rate Token (FT), then whatever happens later should still end with USDC.
that is the claim, right? Borrowers take the debt, a Gearing Token (GT) keeps the collateral and debt position, and my FT is sitting on the lender side waiting on maturity. so where exactly does somebody else’s collateral enter my wallet.
apparently it can.
because TermMax Physical Delivery sits behind the case where liquidation still doesn’t fully cover what FT holders are owed. and then the FT holder can end up with a proportional piece of that collateral instead.
“same claim. different thing coming back.”
and yeah, that bothers me more than liquidation itself.
because the TermMax FT did not suddenly stop being the maturity claim. the borrower’s GT did not magically become mine either. but once TermMax reaches Physical Delivery, some of the collateral sitting behind that GT can become what settles my side.
so was i lending USDC, or accepting the possibility of owning the collateral if the bad path gets bad enough?
and yeah TMX Token governance can shape risk parameters around a TermMax Market, but that still doesn’t turn Physical Delivery back into USDC.
that part is weird.
i was staring at the FT like the ending was already named USDC.
apparently TermMax Physical Delivery never promised me that part.
