Incentive Proposal for TermMax

Protocol/Gauge Name:

Provide the full name of your protocol or project e.g.: Uniswap V3 - pufETH/stETH

  • TermMax - PT-pufETH / pufETH

  • TermMax - pufETH / WETH

  • TermMax - pufETH / USDC

Protocol Description:

  • TermMax, developed by Term Structure Labs, is an innovative DeFi protocol that combines a customizable Uniswap v3 AMM model with fixed-rate, fixed-term borrowing and lending. It also introduces one-click looping strategies on yield-bearing tokens, simplifying leveraged yield generation for users.

Protocol Overview:

  • TermMax supports leverage via one-click fixed-rate borrowing with maturity date. For users seeking leveraged yield strategies, TermMax offers a seamless one-click solution to take out fixed-rate loans from TermMax’s liquidity pools and purchase yield-bearing tokens, such as Pendle’s PT tokens, which are held as collateral until maturity.

  • TermMax offers market makers and curators the flexibility to design their own AMM-based range orders tailored to their unique risk models. These orders can be lend-only, borrow-only, or two-way, enhancing liquidity and pricing efficiency. By aggregating various AMM models into a single market, users benefit from optimized pricing and improved competition.

Key Features:

  • Simplified Leveraging, Borrow and Lend Mechanism with Token Trading: Gearing Token and Fixed-rate Token trading encapsulate complex leveraging processes into straightforward token transactions.
  • 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.
  • Customizable AMM Pricing with Range Orders: Enable market makers to configure range orders on various markets, giving users more choices to borrow, lend, or leverage at their preferred rates.
  • Flexible Liquidation Mechanism by Physical Delivery: In the event of significant market volatility or low liquidity, collateral is delivered directly to lenders as compensation.
  • ERC-4626 Vault Token Design for Enhanced Returns: Enable curators to implement vault trading strategies that optimize investor returns and expand use cases within the ecosystem.

Distribution Method:

  • TBD

Pool Addresses:

  • Chain: Ethereum
  • Pool address: TBD (The mainnet is expected to launch in Q1 2025)

Incentive Impact Statement:

  • TermMax - PT-pufETH / pufETH
    • For this leverage market, Season 2 will bolster pufETH holders to earn leveraged yields with pufETH by creating a looping position with Pendle’s PT-pufETH. On the other hand, Season 2 will also bolster Pendle’s PT-pufETH holders to earn protected rates by lending to leverage users. This will introduce a new way to utilize pufETH and PT-pufETH assets, increasing capital efficiency and further completing Puffer’s DeFi ecosystem.
  • TermMax - pufETH / WETH
    • For this lend/borrow market, Season 2 will bolster pufETH holders to borrow WETH against pufETH. This will increase capital efficiency for pufETH.
  • TermMax - pufETH / USDC
    • For this lend/borrow market, Season 2 will bolster pufETH holders to borrow USDC against pufETH. This will increase capital efficiency for pufETH.

Eligibility Verification:

  • Audit
  • Bug Bounty
    • ImmuneFi: Expected to launch bug bounty program alongside the TermMax mainnet launch
  • Real-time monitoring
    • Hypernative: Real-time web3 security and threat detection for TermMax mainnet

Logo URL, please provide us with the logo (ideally IPFS):

Any Other Resources e.g. direct URL to pool, docs, etc.

Contact Information:

Questions for the Puffer Team or Community (Optional):

  • The TermMax team would like to learn about token pair preferences from the Puffer Community. Which of these three pairs will be the most appealing and useful? Your feedback will help tremendously in our token pair selection at launch.
3 Likes

Hey Andylinee, thanks for proposing this in here.

The protocol and the use cases seem good for pufETH and puffer as a whole, would be nice to check it further once the audits are completed.

On the other hand, i think its really important to establish a date for mainnet for your protocol before proposing an incentive, otherwise it could be hard to get it without having an exact date for mainnet yet.

Cheers and good luck!

1 Like

Hey stevenbravoDXT, thanks for your positive feedback!

We’ll confirm the audit and mainnet launch dates as soon as possible and update them here. If you have any other questions, feel free to ask anytime. Appreciate it!

Proposal: Incentive Proposal for TermMax was escalated to the internal review committee on 17th February.

Status: DECLINED

Hi @Andylinee appreciate you submitting your proposal, following our internal review, the conclusion was that this proposal is a little early. But we’re excited for your mainnet launch, and look forward to revisiting this once you’re live and audit has been completed.

Hi, @Jordan
Thank you to the team for reviewing our previous proposal. We now have more information, including the audit report and proposed markets. We kindly ask the team to review our proposal again. Thank you!

Here is the updated version of the proposal:

Protocol/Gauge Name:

  • TermMax Borrow & Leverage - PT-pufETH-26JUN2025 / pufETH
  • TermMax Borrow - pufETH / WETH

Protocol Description:

  • TermMax, developed by Term Structure Labs, is an innovative DeFi protocol that combines a customizable Uniswap v3 AMM model with fixed-rate, fixed-term borrowing and lending. It also introduces one-click looping strategies on yield-bearing tokens, simplifying leveraged yield generation for users.

Protocol Overview:

  • TermMax supports leverage via one-click fixed-rate borrowing with maturity date. For users seeking leveraged yield strategies, TermMax offers a seamless one-click solution to take out fixed-rate loans from TermMax’s liquidity pools and purchase yield-bearing tokens, such as Pendle’s PT tokens, which are held as collateral until maturity.

  • TermMax offers market makers and curators the flexibility to design their own AMM-based range orders tailored to their unique risk models. These orders can be lend-only, borrow-only, or two-way, enhancing liquidity and pricing efficiency. By aggregating various AMM models into a single market, users benefit from optimized pricing and improved competition.

Key Features:

  • Simplified Leveraging, Borrow and Lend Mechanism with Token Trading: Gearing Token and Fixed-rate Token trading encapsulate complex leveraging processes into straightforward token transactions.
  • 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.
  • Customizable AMM Pricing with Range Orders: TermMax allows market makers to configure range orders on various markets, giving users more choices to borrow, lend, or leverage at their preferred rates.
  • Flexible Liquidation Mechanism by Physical Delivery: In the event of significant market volatility or low liquidity, collateral is delivered directly to lenders as compensation.

Distribution Method:

  • Once the proposed two markets are deployed on TermMax mainnet, users will be able to supply pufETH and PT-pufETH to earn more yields. Puffer and TermMax will collaborate to develop a robust incentive mechanism to maximize user benefits and foster Puffer’s ecosystem growth.

Pool Addresses:

We have already deployed the proposed 2 markets on Ethereum mainnet, You can find the relevant contract addresses for the market in the corresponding documentation, including the market address, collateral asset address, underlying asset address, and more.

Incentive Impact Statement:

  • TermMax Borrow & Leverage - PT-pufETH / pufETH
    • For this leverage market, Season 2 will bolster pufETH holders to earn leveraged yields with pufETH by creating a looping position with Pendle’s PT-pufETH. On the other hand, Season 2 will also bolster Pendle’s PT-pufETH holders to earn protected rates by lending to leverage users. This will introduce a new way to utilize pufETH and PT-pufETH assets, increasing capital efficiency and further completing Puffer’s DeFi ecosystem.
  • TermMax Borrow - pufETH / WETH
    • For this lend/borrow market, Season 2 will bolster pufETH holders to borrow WETH against pufETH. This will increase capital efficiency for pufETH.

Eligibility Verification:

  • Audit:
    • Spearbit: Audit report published on 2025-03-20
    • Cantina’s audit competition: Competition ended on 2025-02-24
  • Bug Bounty:
  • Real-time monitoring:
    • Hypernative: real-time web3 security and threat detection for TermMax mainnet

Logo URL, please provide us with the logo (ideally IPFS):

Any Other Resources e.g. direct URL to pool, docs, etc.

Contact Information:

Questions for the Puffer Team or Community:

  • The TermMax team would like to learn more about token pair preferences from the Puffer Community. Besides the two proposed markets, we’re excited to hear what other markets the community would like to see launched. Your feedback will help tremendously in our token pair selection at launch.
2 Likes

Thanks for submitting the additional materials.

Regarding the borrowed assets, they are closely related to how users implement looping strategies. For example:

1. PT-pufETH / pufETH and pufETH / WETH

  • Borrow PT against pufETH, use pufETH to buy more PT, and then loop. However, this does not contribute to Puffer’s TVL.
  • Simply loop in the pufETH / WETH pool with TVL contribution.

2. PT-pufETH / WETH and pufETH / WETH

  • Borrow PT against WETH and restake the WETH to mint pufETH. Then there are two options:
    • Loop in the pufETH / WETH pool
    • Or buy PT on Pendle and loop in the PT / WETH pool

Which one do you think makes more sense?

1 Like

Proposal: [ Incentive Proposal for TermMax ] was escalated to the internal review committee on 15th April.

Status: APPROVED

It was included in Voting Epoch 7 on 04/17/2025.

2 Likes