📚Introduction

Problems to Solve

TermMax revolutionizes Decentralized Finance (DeFi) leveraged yield strategies by simplifying complex operations and enhancing both cost and time efficiency. Through its innovative fixed-rate borrowing and lending mechanism with integrated leverage functions, TermMax enables investors to borrow at predictable fixed costs, earn expected returns, and maximize leveraged yields.

This streamlined approach eliminates the need for multiple intricate transactions across different protocols, making leveraged yield strategies more accessible, efficient, and profitable for all types of investors.

Complexity of Leveraged Yield Strategies

• Traditional leveraged yield strategies, such as looping, require users to engage in multiple intricate transactions across various protocols.

• Managing these strategies demands advanced technical knowledge and continuous monitoring of positions, creating a steep learning curve for users.

Uncertainty Due to Floating Interest Rates

• Floating interest rates in leveraged strategies introduce significant uncertainty in profits and losses.

• This unpredictability hinders effective trading strategies and complicates risk management.

Inefficiency Due to Transaction Costs

• Leveraging strategies often involve numerous transactions, eroding net returns and making strategies less profitable.

• Smaller investors may find that the transaction costs outweigh the benefits of leveraging, discouraging their participation.

Limited Liquidation Flexibility

• Traditional liquidation mechanisms may fail to compensate lenders adequately due to insufficient asset value or liquidity.

• Conventional platforms often restrict collateral to highly liquid cryptocurrencies, excluding RWAs and low-liquidity assets.

TermMax’s Solutions

Simplified Leveraging Mechanism with Token Trading

• Gearing Token and Fixed-rate Token trading encapsulate complex leveraging processes into straightforward token transactions.

• Eliminates the need for multiple transactions across different protocols.

Fixed Rates and Terms for Borrowing and Lending

• TermMax offers fixed borrowing and lending rates over specified terms, eliminating the uncertainty associated with floating rates.

• The fixed costs and returns allow for better risk management and control over investment outcomes.

Cost-Effective Operations by AMM-Based Leveraging Model

• Utilizes an AMM-based model to facilitate leveraging within a single, efficient system.

• Streamlined processes reduce friction, enabling more frequent and efficient rebalancing.

Flexible Liquidation Mechanism by Physical Delivery

• Implements a physical delivery mechanism where, in the event of significant market volatility or low liquidity, collateral is delivered directly to lenders as compensation.

• Supports collateralization of RWAs and low-liquidity assets, expanding investment opportunities.

By introducing innovative tokens like the Gearing Token and Fixed-Rate Token, and employing mechanisms such as physical delivery and an AMM-based model, TermMax creates an inclusive and efficient platform. This approach not only makes leveraged yield strategies more accessible to a broader range of investors but also fosters a more sustainable and diversified DeFi ecosystem.