DeFi protocols usually assume vaults need direct token collateralization to borrow assets.
TermMax vaults can only borrow by selling FT tokens
acquired through initial lending activities.
That made me look at it differently.
Direct collateralization is restricted here because vaults hold user deposits, keeping capital flow within the ecosystem clear.
How secondary market depth for FT tokens absorbs sudden borrowing demand during heavy volatility will be key.
Want to watch this in practice.
#termmax @TermMax
TermMax vaults can only borrow by selling FT tokens
acquired through initial lending activities.
That made me look at it differently.
Direct collateralization is restricted here because vaults hold user deposits, keeping capital flow within the ecosystem clear.
How secondary market depth for FT tokens absorbs sudden borrowing demand during heavy volatility will be key.
Want to watch this in practice.
#termmax @TermMax
