Range Order Setter

On TermMax, range order setters define their strategies by placing range orders with pricing curves tailored to their intentions and the current market status. These pricing setters leverage the platform's fixed-rate tokenization mechanism to optimize their financial goals. The three types of range order are:

1. Borrowing Range Order Borrowers aim to secure debt tokens (e.g., USDC) at fixed rates by placing range orders with a borrowing curve. Their pricing curve typically specifies higher borrowing rates for the initial portion matched and lower rates for subsequent portions as more of the order is filled. This allows them to manage their borrowing costs effectively while maintaining flexibility for market fluctuations.

2. Lending Range Order Lenders aim to earn fixed yields on their debt tokens by placing range orders with a lending curve. They define lower lending rates for the initial portion matched and higher rates for subsequent portions, ensuring competitive returns as the order fills. This strategy enables lenders to maximize profits while efficiently deploying their capital.

3. Two-Way Range Order Two-way range order setters combine the strategies of borrowers and lenders by placing a single range order with two pricing curves:

   • A borrowing curve with lower rates, minimizing borrowing costs when borrowing market takers fill the order.

   • A lending curve with higher rates, maximizing yields when lending market takers fill the order.

   By earning the spread between borrowing and lending rates, two-way range order setters dynamically adjust their roles based on market activity, optimizing both capital deployment and risk management.