#termmax @TermMax Composable collateral is one of the more advanced ideas behind TermMax.
Instead of limiting collateral to simple assets like ETH or USDC, TermMax can support yield-bearing or structured assets that still play an active role in another financial position.
For example:
Normally:
ETH → deposit as collateral → borrow USDC
With composable collateral in TermMax:
Yield-bearing asset → use as collateral → borrow → deploy capital → potentially create another strategy
A user could hold a Pendle PT or an LST/LRT and, rather than selling it to access liquidity, use it as collateral for a fixed-term borrowing position in TermMax.
This is powerful because the collateral already has its own financial characteristics:
ETH → basic asset exposure
LST → ETH exposure + staking yield
LRT → ETH-related exposure + additional restaking economics
Pendle PT → fixed-maturity yield exposure
RWA → tokenized exposure to a real-world asset
So instead of forcing liquidity to come at the expense of the underlying strategy, TermMax can turn these assets into building blocks for fixed-term credit markets.
In one sentence:
Composable collateral in TermMax means the asset used as collateral can still retain its own yield, maturity, or strategy while helping power a different financial position.
#termaxtge #TerMax @TermMax