Term Structure, the intial non-custodial fixed-income protocol, has successfully launched its mainnet on Ethereum. A first-of-its-kind market-driven fixed-income technology is being unveiled, marking a watershed moment in decentralized finance (DeFi). This protocol will change the way liquidity is distributed between borrowers and lenders.
Users will gain the opportunity to utilize their LRTs and LSTs as collateral for borrowing tokens at fixed rates, along with obtaining points and staking rewards in primary markets. The secondary markets back the trade pertaining to the fixed income tokens via a real-time order book for improving liquidity.
Jerry Li, co-founder of the company, claims that problems concerning DeFi’s growth are hindered by the lack of stable income items. In this scenario, the Term Structure protocol provides fixed rate and period items that are designed to mitigate risk and introduce a variety of trading methods to the DeFi ecosystem.
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Through its mainnet, Term Structure intends to create a benchmark for liquidity control, enabling users to harness fixed rates of funds. It is necessary to use options to obtain circulating APYs. Institutional customers, traders, and retail investors are the target audience for their mainnet.
Team Structure alienates itself from others by providing a united fixed income space that includes both primary and secondary markets. To proceed, users have the option of using their LSTs and LRTs as collateral for borrowing tokens at fixed rates and establishing selected interest rates. After the tally of orders, borrowers return the borrowed tokens promptly to redeem the collateral.
Meanwhile, investors can get their hands on redeemable tokens with set income at maturity. The secondary markets back the purchase and sell procedure. The protocol also makes use of zkTrue-up, a custom-built ZK Rollup, to do away with gas fees associated with order cancellations and placements. It comes with safety factors such as forced withdrawal and evacuation modes for harnessing the assets of users in troubling situations.
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Prior to the mainnet activation, Term Structure managed to acquire a funding amount of $4.55 million, with Cumberland DRW, Longling Capital, HashKey Capital, Decima Fund, and MZ Web3 Fund contributing. The ZK circuits and smart contracts of the protocol have been audited by HashCloak and ABDK. With over 8,000 wallets and 2 million transactions facilitated, the system has also shown tremendous market momentum with its testnet.
