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
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