Term Structure announces the launch of TermMax. This is the first protocol in the DeFi space that perfectly combines fixed-rate lending with leveraged strategies (also known as DeFi loops), aimed at simplifying complex yield strategies to make each trade more efficient and seamless.
Core Innovative Features of TermMax
TermMax has two core innovative features that will unlock more yield strategy possibilities for DeFi users:
1. Yield Certainty: Borrowing costs are predictable, and yields are guaranteed.
2. Customized AMM Interest Rate Order Book:
In addition to pricing based on a customized version of the Uniswap V3 AMM model, market makers can flexibly provide range interest rate quotes that better fit strategic needs based on specific risks, asset types, and duration preferences of each market. It breaks through the limitations of traditional AMM model curves and also supports selective one-sided market making only for deposits or loans.
From leveraged yield strategies to fixed-rate financing, investment, and interest rate hedging, TermMax offers multi-term and diversified possibilities, providing a one-stop solution for your trading needs.
Why Choose TermMax? Addressing Pain Points of DeFi Leveraged Yield Strategies
On other platforms, leveraged yield strategies often require operations across multiple protocols, which can be cumbersome and require technical knowledge, along with the uncertainties and high transaction costs associated with floating interest rates, making it a high barrier for small users.
Expanding the Diverse Possibilities of DeFi Financial Operations
To create a more user-friendly fixed income market, we provide a comprehensive suite of financial management tools, including:
• Asset Lending and Borrowing: Users can flexibly lend and borrow assets under fixed terms and fixed interest rates.
• Yield Long and Short Position Management: Investors can establish long and short positions to achieve speculative or hedging goals against market interest rate fluctuations.
• Leveraged Yield Strategies: By leveraging investments in yield-generating tokens, achieving higher yields and more efficient capital utilization.
TermMax integrates these functions into a fully decentralized lending market, creating lending conditions with fixed maturities and fixed interest rates to meet the strategic needs of various users, achieving higher asset efficiency in the DeFi environment.
Make good use of fixed income tokens to create higher and more stable returns.
We use PT tokens provided by Pendle Finance and other yield-bearing tokens as collateral to pursue higher and more sustainable yields. By integrating these tokens into the platform, we can achieve:
1. Return Amplification: Amplifying returns through leverage under transparent and controllable risks.
2. Diversification of Collateral: Supports a wider range of assets as collateral, including yield-bearing tokens and real-world asset tokens (RWA), thereby increasing investment opportunities and capital efficiency.
Foundation for Building Yield Curves
Through market demand-driven yield lending with various fixed maturities, TermMax will gradually establish yield curves for each token pair. These term structures will become the core standards of the fixed income market, laying the pricing foundation for more advanced financial instruments and derivatives in the future.
1. Market Standardization: Clear and accessible yield curves will become the reference benchmarks for market pricing and valuation.
2. Enhanced Market Depth: A robust yield curve will attract more participants and diversified strategy orders into the market, thereby enhancing liquidity and stability.