What Is TERM Finance? 5 Key Features Analysis on How TERM Solves DeFi Lending Dilemmas
1. What is TERM Finance?
2. Three Major DeFi Lending Dilemmas TERM Finance Aims to Solve
3. Five Core Features of TERM Finance
- Sealed bidding: All bids are hidden from the public through hash algorithms until market clearing.
- Single price: All participants trade at the same clearing price.
- Second-price mechanism: Reduces participants' incentives to submit non-true valuations.
- Proportional allocation: Prioritizes the lowest-cost suppliers and the most willing borrowers.
- Fixed-term, fixed-rate lending model.
- Non-recallable: Neither party can terminate the contract early during the loan period.
- Collateral-backed: All loans are backed by liquid digital assets.
- Non-custodial architecture: Collateral locked in smart contracts, verifiable in real-time.
- Funds are locked only during auction periods, and unsuccessful bids are immediately returned.
- Single market clearing rate avoids supply-demand rate gaps.
- No need for large idle funds to achieve scale.
- Clear maintenance margin rate requirements.
- Smart contracts limit the amount of debt liquidators can cover.
- Transparent and predictable liquidation process.
- User screening mechanism ensures platform safety and compliance.
- Independent Term Repo Locker design isolates collateral for different maturities and assets.
- Reduces users' exposure to cybersecurity risks.
4. Main Functions of TERM Token
5. Future Development Potential of TERM Finance
6. How to Purchase TERM Tokens on MEXC
Popular Articles
What is the Main Purpose of Staking in Arichain? Everything You Need to Know
Blockchain technology can feel overwhelming for newcomers, but ARI Wallet is changing that narrative.This guide explains the main purpose of staking in Arichain, a blockchain platform that launched in
Celebrating 7 Years of MEXC: Building the Future of Crypto Infrastructure with "More" at the Core
As MEXC celebrates its seventh anniversary, it continues to embrace “more” as its core strategy—forging a path of innovation across the expanding universe of digital finance. Over the past seven years
How to Stake Polygon? Complete Guide to POL Staking Rewards
Polygon staking offers crypto holders a way to earn passive income while supporting network security.This guide explains everything beginners need to know about staking POL tokens, from choosing the r
How to Buy Crypto via iDEAL
iDEAL is one of the most widely used and trusted online payment methods in the Netherlands, allowing you to make secure, real-time payments directly through your bank. With iDEAL on MEXC, you can purc
Hot Crypto Updates
Dogecoin (DOGE) Price Analysis: December 2025 Breakdown Below Key Support – What Should Investors Do?
Key Takeaways Dogecoin (DOGE) price broke below the critical $0.145 support level in December 2025, initiating a new downtrendCurrent DOGE price trading below $0.140, beneath the 100-hour simple movin
EthXY (SEXY) Price Prediction 2026-2030: Expert Analysis & Investment Outlook
Key Takeaways EthXY (SEXY) currently trades around $0.03-0.04, significantly down from all-time high of $3.142026-2030 price predictions based on technical analysis, project development, and GameFi ma
Ethereum's Future: Institutional Investment and Price Potential
1. Financial Expert's Crypto Market PerspectiveTom Lee, co-founder of Fundstrat and chairman of BitMine Immersive Technologies, stands out as a leading voice in blending traditional macroeconomic anal
The Psychology of FOLO in Cryptocurrency Trading: Understanding and Overcoming Fear
1. Defining FOLO in the Cryptocurrency ContextFOLO, or Fear of Losing Out, represents a powerful psychological force in cryptocurrency trading, distinct from the more commonly discussed FOMO. Unlike F
Trending News
Wholecoiner Inflows to Binance Hit Cycle Lows, Signaling Reduced Sell Pressure
Wholecoiner inflows to Binance have reached cycle lows, according to on-chain analytics firm CryptoQuant, indicating a potential decrease in sell pressure for Bitcoin (BTC). This metric, tracking addr
Coinbase Vs. State Regulators: Crypto Exchange Fights Legal Fragmentation
US-based crypto exchange Coinbase has made a significant appeal to the Department of Justice (DOJ) regarding a wave of lawsuits aimed at its operations. The company is urging federal action to address
Crypto Fear & Greed Index Hits 16, Currently in ‘Extreme Fear’
The Crypto Fear & Greed Index has plummeted to 16, entering 'extreme fear' territory and reflecting heightened anxiety among investors amid ongoing market volatility. This low reading suggests potenti
Vitalik Buterin: “ZK-Proof Every Decision Made by the Algorithm” for Transparency
Ethereum co-founder Vitalik Buterin has advocated for using zero-knowledge (ZK) proofs to verify every decision made by algorithms, emphasizing onchain timestamps and delayed code release as essential
Related Articles
What are Take-Profit/Stop-Loss Orders? Your Automated Tool for Risk Management and Profit Locking
1. What Is a Take-Profit/Stop-Loss Order? A Take-Profit/Stop-Loss order lets users set a trigger price in advance, along with the price and quantity to buy or sell once the trigger is reached. When th
What is Spot Trading in Crypto? Complete MEXC Guide for Beginners
Cryptocurrency trading is typically divided into two categories: spot trading and futures trading. Spot trading is the act of buying or selling digital assets on the market, referring to the exchange
Pre-Market Trading: Risks, Opportunities, and MEXC’s Security Triangle
Airdrops and points-based reward systems have become key tools for project teams to attract users and distribute tokens amid the rapid growth of the crypto market. Some users, aiming to secure early p
What is Pre-Market Trading?
1. What is Pre-Market Trading?Pre-market trading is an OTC (Over-The-Counter) service provided by MEXC that allows traders to buy and sell new tokens before they are officially listed on the cryptocur
