The part of @TermMax find most interesting is the way it separates predictable borrowing from floating market rates.
A borrower locks collateral into a GT, issues FT, and uses the FT/XT structure to access the debt asset.
The important part is that the borrowing obligation is tied to the fixed term.
That changes the planning problem completely.
Instead of asking “what will my borrowing rate be next week?” you can start with a defined maturity and known economics.
Of course, that doesn't mean the position is SAFE.
Collateral value can move, liquidity can disappear, and smart contracts can still carry risk.
But from a market-design perspective, fixed obligations are worth studying.
That’s probably the strongest reason I’m paying attention to TermMax.
#TermMax
A borrower locks collateral into a GT, issues FT, and uses the FT/XT structure to access the debt asset.
The important part is that the borrowing obligation is tied to the fixed term.
That changes the planning problem completely.
Instead of asking “what will my borrowing rate be next week?” you can start with a defined maturity and known economics.
Of course, that doesn't mean the position is SAFE.
Collateral value can move, liquidity can disappear, and smart contracts can still carry risk.
But from a market-design perspective, fixed obligations are worth studying.
That’s probably the strongest reason I’m paying attention to TermMax.
#TermMax