Funding & Backing: Term Finance has raised $8M in a funding round led by Electric Capital, with participation from Coinbase Ventures, Circle, and other notable investors. These funds will help develop the protocol and accelerate its roadmap.
Introduction to Term Finance
Term Finance is a decentralized fixed-rate lending and borrowing protocol. Unlike traditional DeFi platforms, it allows users to fix both the term and rate of their loans, offering a more predictable financial experience.
Time Required: 15 Minutes
Key Features:
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Fixed-Rate Lending: Ensures stability by offering predictable, on-demand yields.
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Auction-Based Matching: Matches borrowers and lenders through periodic auctions (typically 4 weeks) where rates are set based on bids and offers.
How It Works
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Deposits & Purchase Price: Borrowers transfer collateral tokens at a "Purchase Price." Lenders receive an ERC-20 token called the "Repo token," representing the repurchase price on a 1:1 ratio.
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Lending Cycle: The lending cycle is short (4 weeks), which currently makes fixed-rate lending less popular due to its operational challenges.
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Blue Sheets: To simplify the process, Term Finance has introduced Blue Sheets to make fixed-rate lending more accessible and efficient, providing users with seamless access to predictable yields.
Current Challenges & Innovations
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Challenges: The demand for fixed-rate lending in DeFi is low because short lending cycles (4 weeks) can be cumbersome for users.
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Innovations:
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Blue Sheets simplify fixed-rate lending, making it more user-friendly and encouraging participation.
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Yield Bearing Strategies: Although advanced and not for everyone, these strategies offer unique opportunities for users who can navigate them.
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Caution & Disclaimer
This is an advanced farming strategy, and any airdrop potential has not been confirmed or stated by Term Finance. Proceed with caution.
Stay Connected
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Discord: Term Finance Discord
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Twitter: @term_labs
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Documentation: Term Finance DocsExplore more about liquidated damages, fixed-rate lending, and how borrowers are subject to an 8% liquidation penalty if they default.
Why Term Finance Stands Out
With its innovative approach to fixed-rate lending, Term Finance addresses the complexities of DeFi, paving the way for greater financial stability and accessibility. Whether you're a seasoned DeFi user or exploring advanced farming strategies, this protocol is worth keeping an eye on
Joining Link :
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Galxe Quest Link :
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QUIZ Answer: [Flex your Knowledge]
B. A straightforward way...
D. Swap freely ....
E. All... C. Boomers looking....
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