TermFinance provides crypto‑backed loans with fixed interest rates determined through weekly on‑chain auctions on Ethereum.
Funding
$5.5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
1OFounders
Product
Problem
Crypto borrowers often face volatile interest rates and uncertainty about funding costs, while lenders struggle to obtain predictable returns on crypto-backed loans, leading to inefficient capital allocation in DeFi markets.
Solution
TermFinance offers crypto-backed loans with fixed interest rates set through weekly on-chain auctions on Ethereum. Borrowers can lock in a known cost of funding for terms ranging from short periods up to one year, enabling better cash‑flow planning. Lenders receive a single market‑clearing rate that guarantees a predetermined return, regardless of loan size. The transparent auction mechanism matches borrowers and lenders in a fair process, producing a single rate that all participants pay or receive. Smart contracts governing the auctions are audited and achieve a high DeFi Safety score, ensuring security and trust in the platform.
Target Audience
Primary users are crypto asset holders seeking short‑ to medium‑term financing and institutional or retail investors looking for fixed‑rate yields on crypto‑backed lending.
Features
- Weekly on-chain auctions that determine a single market‑clearing rate for each term length
- Fixed‑rate crypto‑backed loans with terms up to 12 months, allowing borrowers to lock funding costs
- Predictable return rates for lenders, providing certainty for cash‑flow management
- Transparent auction process that treats large and small participants equally
- Audited smart contracts with a DeFi Safety score of 93% to protect assets