The Lending market in DeFi still has many problems. Morpho was born and solved some of those problems but still exposed many other limitations. Today I introduce to you a project called Term Finance. Although it does not completely solve the problems, it also brings a new, very feasible solution for DeFi.
What is Term Finance? Term Finance is a Lending protocol that provides users with autonomy over assets and interest rates for borrowing and lending. The project also received investment from many large funds such as Coinbase Venture, Electric Capital, Circle.
So what is Term Finance? How does it work? Let’s find out in this article!
What is Term Finance?
Overview of Term Finance
Term Finance is a Lending protocol that helps users proactively set and find the best APY. Using a combination of the P2P Lending model and the auction mechanism to help borrowers and lenders easily find each other to match orders. With different terms from 1 week to 1 year, Term will have different interest rates. The purpose of Term Finance is also to focus on solving the APY difference problem in the Peer-to-Pool Lending model.
This is an extremely new combination that has solved many problems in the Lending segment. Although it has not solved all the problems, it is also a bright spot and evidence that the market is growing very quickly. .
The difference of Term Finance
- Using an auction mechanism for direct P2P matching helps borrowers and lenders find each other more easily than regular P2P.
- Offers good APY rates for both borrowers and lenders.
- Opens up a large source of liquidity for the futures market, with less risk of liquidation.
Mechanism of action
Auctions will take place weekly on Term and users only need to set parameters such as asset type, bid price (lowest interest rate for lenders and highest interest rate for borrowers). and term. At the end of the auction time, the protocol will match orders of the same asset type, same term and that meet the interest rate requirements between the two parties.
It can be simply understood that this mechanism is not much different from the regular P2P Lending model. But Term uses a bid level with an initial bid mechanism that helps more orders be matched together than P2P. Thereby solving the problem of poor liquidity of the long-standing P2P Lending model.
Development Roadmap
Update…
Core Team
Dion Chu: Founder & CEO
- In 2006, Dion graduated with a Bachelor’s degree in Economics from Cornell University, then continued to graduate with a Doctor of Laws degree from Harvard University in 2012.
- In 2012, Dion worked at Jefferies. He has been with the company for nearly 4 years and has held positions such as Associate – US Rates Trading, VP – US Rates Trading.
- In 2016, Dion worked as a Trader at Capula Investment Management LLP.
- Currently, Dion is Founding and Managing Principal, Chief Investment Officer of Orthogonal Asset Management and Founder & CEO at Term Labs.
Billy Welch: Co-Founder
- In 2007, Billy graduated with a Bachelor’s degree in Economics from Indiana University Bloomington.
- In 2007, Billy worked in Business Development at Chicago Climate Exchange, the company was sold to ICE for more than 600 million USD.
- In 2009, Billy worked as CEO at IFEX, an insurance futures exchange.
- In 2013, Billy worked as Associate Director – Investment Banking at Aon Benfield.
- In 2017, he worked as Head Of Business Development at WHW Advisors.
- In 2021, he worked as Head of Product Strategy at Mycelium and Project Lead at Tracer DAO.
- Currently, Billy is Co-Founder at Term Labs.
Dai Yu: Founder & CFO
- In 2005, Dai Yu graduated in Computer Science from the University of Pennsylvania and Finance from The Wharton School.
- In 2005, Dai Yu worked as an Analyst for Citigroup.
- In 2006, Dai Yu worked as an Associate at Morgan Stanley.
- In 2008, Dai Yu worked as Portfolio Manager at GoldenTree Asset Management.
- Currently, he is Founder, CFO at Term Labs.
Robert Chu: Founder & CTO
- In 2011, Robert graduated with a Bachelor’s degree in Computer Science from the University of Washington.
- In 2011, Robert worked as an Undergraduate Researcher at the University of Washington Computer Science Department.
- In 2012, he worked at WibiData, where he held positions such as Software Engineer and Technical Lead.
- In 2015, Robert worked as a Software Engineer at Zymergen and was Co Founder and CTO at Knotwork.
- In 2016, he worked as a Software Engineer at Planet.
- In 2017, he worked as a Software Architect at Frontdesk Anywhere.
- Currently, Robert is CTO at Term Labs.
Gabrielle Reilly: Project Manager
- In 2018, Gabrielle worked as a Paralegal at Dominion Wealth Law.
- In 2020, she worked as TTeam Manager at Lavender & Mane and worked as Paralegal at Chu, Lund & Peng.
- Currently, she is Project Manager at Term Labs.
Investors
February 28, 2023: Seed round successfully raised $2.5M led by Electric Capital and with participation from funds such as Coinbase Ventures, Circle, MEXC, Robot Ventures.
Tokenomics
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Exchanges
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Term Finance’s Information Channel
- Website: https://termfinance.io/
- Twitter: https://twitter.com/term_labs
- Medium:
Summary
Term Finance brings a very viable new solution to the Lending market and has overcome some remaining problems in DeFi. This will be a Hidden Gem so you can follow the project closely to find investment opportunities to change your position.
So I have clarified what Term Finance is? Term Finance cryptocurrency overview. Hope this article provides you with a lot of useful knowledge!