#termmax
the more i look at @TermMax , the more this small repayment detail stands out to me.
i first assumed settling the debt would basically mean finding the original debt asset and handing it back.
but there’s another route worth noticing: FTs themselves can be used for settlement, which makes the market around the fixedterm claim part of the repayment picture.
thats interesting because an FT can trade before maturity.
so, in theory, a borrower could look at the market and find FTs trading at a price that makes acquiring them more attractive than sourcing the underlying debt asset another way
Of course, that depends on the actual FT price, liquidity and market conditions at that moment. its not some guaranteed discount.
but i like the flexibility here.
repayment isnt just the final step after borrowing. the FT market can actually become part of how that obligation gets settled.
thats the kind of small mechanism i usually stop at when reading DeFi docs. the big product description tells you what something is. these details tell you how it actually behaves.
what's your take??
the more i look at @TermMax , the more this small repayment detail stands out to me.
i first assumed settling the debt would basically mean finding the original debt asset and handing it back.
but there’s another route worth noticing: FTs themselves can be used for settlement, which makes the market around the fixedterm claim part of the repayment picture.
thats interesting because an FT can trade before maturity.
so, in theory, a borrower could look at the market and find FTs trading at a price that makes acquiring them more attractive than sourcing the underlying debt asset another way
Of course, that depends on the actual FT price, liquidity and market conditions at that moment. its not some guaranteed discount.
but i like the flexibility here.
repayment isnt just the final step after borrowing. the FT market can actually become part of how that obligation gets settled.
thats the kind of small mechanism i usually stop at when reading DeFi docs. the big product description tells you what something is. these details tell you how it actually behaves.
what's your take??