I noticed in @TermMax doc. That How does TermMax's fixed-rate lending/borrowing mechanism work? here is the full details n below
Step 1: The user selects a market and a term First, the user views the available lending/borrowing markets on TermMax. Then, they select the duration of the transaction and the asset to be used.
Step 2: The borrower deposits collateral If the user wishes to borrow, they must deposit a specific crypto asset as collateral. This collateral supports the borrowing position.
Step 3: The fixed rate is determined The interest rate is determined based on the orders placed by lenders and borrowers in the TermMax term market. Once the transaction is completed, the rate remains fixed for the specified term.
Step 4: Borrower receives the asset / Lender provides the asset** The borrower obtains the required asset, while the lender supplies their asset to the lending market. In other words, the liquidity needed by one party is generated from the liquidity supplied by the other.
Step 5: Position settles at maturity** Upon the conclusion of the specified term, the borrower closes the position by repaying the principal amount and the agreed-upon interest. The lender receives the amount due to them.
I give you small example: Suppose you want to borrow USDC for 3 months. Deposit collateral → Select a 3-month term → Fixed rate → Borrow USDC → Repayment after 3 months. This is the best way to understand the entire process simply. #termmax @TermMax