🔠Use Cases

Looper: Earning Leveraged Yields with GT

Loopers are investors seeking to amplify their returns by leveraging their positions. By purchasing Gearing Tokens (GT), they can achieve higher yields without engaging in complex looping strategies.

Example:

Alice has 1,000 USDC and wants to maximize her returns on yield-bearing tokens. Instead of performing multiple transactions to loop her assets, she buys a GT on TermMax. This GT represents a leveraged position where her USDC is used to acquire additional yield-bearing tokens, such as PT-sUSDe-27DEC2024. Through the GT, Alice benefits from amplified yields due to the embedded leverage, all while simplifying the process and managing her liquidation risk through the platform.

Fixed-Income Farmer: Earning Stable Returns with FT

Fixed-income farmers aim for predictable and stable income. By purchasing Fixed-rate Tokens (FTs) at a discount and redeeming them at maturity, they secure fixed returns over a specified term.

Example:

Bob prefers low-risk investments and wants to earn steady income on his 5,000 USDC. The current annual interest rate for FTs maturing on 27 December 2024 is 15%. Therefore, Bob can purchase FTs at a discounted price calculated based on this interest rate.

Bob buys the FTs for approximately 4,347.83 USDC (5,000 USDC / (1 + (0.15 × 1))). At maturity on 27 December 2024 (Assuming 1 year time to maturity for simplicity), he redeems the FTs for the face value of 5,000 USDC.

Moreover, TermMax's flexible liquidation mechanism provides Bob with added security. If a borrower defaults and their collateral is only partially liquidated, Bob receives a proportional share of the collateral, such as PT-sUSDe-27DEC2024, through physical delivery. This ensures that his investment is protected, and he still benefits from the underlying assets even in adverse situations.

Borrower: Leveraging Idle or Valuable Assets

Borrowers can collateralize their idle or valuable assets to obtain leverage or profit from interest rate differentials by borrowing at lower rates and lending at higher rates.

Example:

Alice owns PT-sUSDe-27DEC2024 tokens that she doesn't want to sell but wishes to leverage. She collateralizes her PT-sUSDe-27DEC2024 on TermMax to borrow USDC at a low interest rate. Alice then uses the borrowed USDC to purchase more PT-sUSDe-27DEC2024 or other yield-bearing assets, effectively increasing her exposure and potential returns. Alternatively, she can lend the borrowed USDC at a higher rate by purchasing FTs, profiting from the difference between the borrowing and lending rates.

Lender: Strategic Investor Earning Interest Rate Differentials

Lenders can act as strategic investors who borrow at low interest rates and lend at higher rates to capitalize on interest rate differentials, thereby enhancing returns.

Example:

Bob notices that the interest rate for borrowing USDC is currently low on TermMax, while the fixed rate for lending via FTs is relatively higher. He borrows USDC at a low variable rate by collateralizing assets he owns (e.g., PT-sUSDe-27DEC2024) and then uses the borrowed USDC to purchase FTs, effectively lending at a higher fixed rate. By doing so, Bob profits from the spread between the borrowing and lending rates.

In addition, TermMax's physical delivery mechanism offers Bob extra protection. If a borrower defaults and their collateral is only partially liquidated, Bob receives a proportional amount of the collateral directly, such as PT-sUSDe-27DEC2024. This ensures that his assets and returns are safeguarded, providing confidence in the security of his investment.

Liquidity Provider: Earning Fees and Incentives with Flexible Exit Strategies

Liquidity providers (LPs) supply liquidity to TermMax's AMM pools and earn a share of transaction fees and incentives. They have flexibility in liquidating positions and can adapt strategies based on market conditions.

Example:

Alice provides liquidity to the XT/FT pool on TermMax by depositing USDC and receives lp-XT and lp-FT tokens in return. She earns transaction fees from trades occurring in the pool, as well as incentives offered by the platform. If Alice wishes to exit her position, she can redeem her lp-XT and lp-FT tokens for XT and FT tokens and then swap them back into USDC, or redeem the LP tokens for USDC directly. This flexible exit strategy allows her to access her funds whenever she chooses.

By participating as an LP, Alice benefits from transaction fees and incentives, enhancing her returns. She also has the flexibility to adjust her holdings based on interest rate trends or market conditions, optimizing her investment strategy.

Summary

TermMax caters to a diverse range of participants in the DeFi space:

• Loopers can easily leverage their investments with GTs with one click at low gas fees.

• Fixed-income farmers secure stable returns with FTs and are protected through physical delivery in partial liquidations.

• Borrowers unlock the value of their assets without selling them.

• Lenders act strategically to profit from interest rate differentials.

• Liquidity providers benefit from transaction fees, incentives, and flexible exit strategies.

By simplifying complex financial mechanisms into accessible token transactions and offering protective measures like physical delivery of collateral, TermMax empowers users to engage in DeFi investments aligned with their goals and risk tolerance.