🪙Tokens

Gearing Token (GT)

Leveraging with Liquidation Risk

The Gearing Token (GT) is an ERC721 token designed for investors seeking leveraged yields with an associated liquidation risk. Traditionally, achieving leveraged yields through looping strategies involves multiple complex steps: users collateralize tokens that are appreciating in value to borrow stablecoins, then use those stablecoins to purchase more of the collateral tokens, repeating the process to borrow additional stablecoins.

The GT simplifies this process by encapsulating the collateralization and leveraging operations within TermMax’s Automated Market Maker (AMM) model. By holding a GT, investors represent their leveraged position efficiently and securely.

Fixed-rate Token (FT)

Earning Fixed Income with High Certainty

The Fixed-rate Token (FT) is an ERC20 token that allows investors to earn fixed income by purchasing the token at a discounted price and redeeming it at its maturity date. FT provides users with yields at a fixed rate over a fixed term, offering high certainty in returns. When market interest rates for this token decrease, it becomes advantageous for investors to buy FT instead of GT to secure profits through fixed-income investments.

X Token (XT)

Intermediary Token for Collateralization and Leveraging

The X Token (XT) is an ERC20 token that serves as an intermediary in the leveraging process. XT represents the transition from deposited tokens (e.g., USDC) to the Gearing Token (GT). It contains records of the deposited collateral and associated debt obligations.

When swapping from XT to GT, the deposited tokens are converted into collateral assets (e.g., PT tokens) to initiate the looping process for leveraged yields. Liquidity providers who redeem their LP tokens receive XT and FT. XT holders can still profit if the interest rate of the borrowed token rises, despite XT not having explicit use cases beyond this intermediary role.

lp-XT and lp-FT

Providing Liquidity to TermMax AMM Markets

lp-XT and lp-FT are ERC20 liquidity provider (LP) tokens that investors receive after depositing underlying tokens into TermMax’s AMM pools. Holders of lp-XT and lp-FT are entitled to a share of the transaction fees and incentives generated by the market pools.

LP token holders have several options:

• Redeem lp-XT and lp-FT: Exchange them for XT and FT tokens, respectively.

• Exit Positions: Swap the redeemed XT and FT tokens back into the underlying assets to exit their liquidity positions.

• Strategic Trading:

  • Sell XT Tokens: When the interest rate of the borrowed token decreases, potentially profiting from market movements.

  • Sell FT Tokens: When the interest rate of the borrowed token increases, capitalizing on favorable fixed-rate conditions.