Protocol/Gauge Name:
Term Finance
Protocol Description:
- Term Finance is a fixed rate lending protocol utilizing onchain auctions to originate fixed rate, fixed term loans at institutional scale.
Protocol Overview:
- Term conducts weekly onchain auctions to match borrowers and lenders to originate overcollateralized fixed rate, term loans.
- Borrowers and lenders match at a single clearing market clearing rate. Once loans are originated, Capital is 100% utilized. This means no spread in supply/borrow rates like you see on other lending protocol. So lender receive more and borrowers pay less on average.
- Term Finance is the first fixed rate lending protocol to demonstrate it can scale to meet users needs particularly with DeFi power users and institutions.
- The protocol has cleared over $300m in loans, reached TVL of $100m and seen over $1B of bids and offers since inception.
- Expanding the ecosystem to more passive users, Term has release two products built on top of auctions: 1) Term Earn aka “Blue Sheets” and 2) Term Strategies Vaults
Target Audience:
- DeFi Natives
- Institutional Funds
- Other Protocols
Key Features:
- Fixed Rate, Fixed Term Borrowing and Lending: Provides stability and predictability in borrowing costs and lending returns, directly addressing the issue of daily rate swings from 5% to over 30%.
- Direct Matching through Single Price Sealed Bid Auction: Enhances the scalability of the lending process by matching large volumes of lenders and borrowers efficiently, eliminating the common issue of interest rate slippage and need to idle standing liquidity found in other AMM-based protocols.
- Isolated Collateral Pools for Each Loan: Allows for customizable loan terms and features, making it easier to adapt to new types of collateral and market demands quickly and tailor terms to specific borrowers/lenders. This setup is highly relevant as it addresses the need for diverse lending and borrowing options and reduces contagion risks across markets.**
- Term Strategy Vaults (built on top of Yearn v3): Risk curators to curate high quality yield for depositors through participation in Term auctions and high quality variable rate lending markets (e.g. Aave, Euler, Morpho). These vaults are high value when looking to create ecosystem alignment and composability across protocols.
Distribution Method:
TBD
Pool Addresses:
Please provide the recipient Pool addresses (chain name: address)
- Chain: Ethereum
- Protocol Contracts
- Term ETH Meta Vault
Incentive Impact Statement:
- Short term Incentives would be used to attract lenders to bring additional supply into the ecosystem to meet excess borrow demand, growing TVL for the ecosystem.
- For example, borrower post pufETH or PT-pufETH as collateral and Lenders lend wETH. Borrowers are able to participate in looping strategies to generate yield and lenders earn the real interest rate plus additional incentives for helping to boost TVL and liquidity to the ecosystem.
Eligibility Verification:
- Term Finance App
- Term Finance Developer Docs which includes: Protocol Smart Contract Audits, Term Strategy Vault Audits
Logo URL, please provide us with the logo
Logo: Term Finance MediaKit
Any Other Resources e.g. direct URL to pool, docs, etc.
Contact Information:
Provide contact details for further discussions, such as an email address, Telegram handle, or Discord username.
- Email: billy@termfinance. io
- Telegram: @billywelch
Questions for the Puffer Team or Community (Optional):
Interested in other Assets outside of pufETH and PT tokens that would interest the community to see on Term.
