Facilitates fixed-rate crypto-backed lending through on-chain auctions on Ethereum, enabling institutions to lock in funding costs or secure predictable returns. The platform ensures transparent pricing and fair market rates by clearing loans via a single auction-determined rate, accommodating various terms up to one year.
Funding
$8.5M 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.
Founders
Product
Problem
In DeFi, borrowers and lenders often face uncertainty regarding interest rates, making financial planning and risk management challenging. Existing variable rate lending platforms expose users to fluctuating costs and returns, hindering effective cash flow management.
Solution
Term Finance provides a platform for fixed-rate, crypto-backed lending and borrowing via on-chain auctions on Ethereum. The protocol matches lenders and borrowers through recurring auctions, where participants submit bids and offers to determine a market-clearing interest rate. Borrowers can lock in funding costs, while lenders secure predictable returns for terms up to one year. Term Finance uses Term Repo Tokens (TRTs) as ERC-20 receipts representing the lender's right to redeem principal plus interest at maturity. The platform's smart contracts manage repayments, monitor collateral health, and facilitate liquidations, ensuring a transparent and non-custodial lending experience.
Target Audience
The primary audience includes institutional investors, DAOs, and sophisticated DeFi users seeking fixed-rate lending and borrowing opportunities to manage risk and cash flow.
Features
- On-chain auctions for determining fixed interest rates on crypto loans
- Support for various loan terms up to one year
- ERC-20 Term Repo Tokens (TRTs) representing lenders' positions
- Automated liquidation mechanism to maintain collateralization
- Blue Sheets listings for simple earning opportunities
- Integration with Summer.fi's Lazy Summer Protocol for optimized fixed-rate yields
- Term Strategy Vaults for hands-off, steady fixed-rate yields with Term Points boosts