- The innovative Term Structure protocol has officially launched its mainnet on Ethereum, heralding a new era in decentralized finance (DeFi).
- This pioneering initiative aims to revolutionize how lenders and borrowers provide liquidity in the DeFi space through a market-oriented fixed income protocol.
- “Our mainnet introduces a significant DeFi advancement, enabling users to leverage digital assets with fixed rates and terms,” says Jerry Li, Co-founder of Term Structure.
Explore how Term Structure’s Ethereum mainnet launch is set to transform liquidity provision in DeFi with fixed rate and term products.
Transformative Mainnet Launch on Ethereum
Term Structure’s mainnet launch on Ethereum represents a pivotal moment in DeFi. This protocol introduces fixed rate and term products to institutional and individual investors, filling a critical gap in the market. With features designed to enhance liquidity management and risk containment, it promises to refine trading strategies that were previously unavailable within the DeFi ecosystem.
Innovative Protocol Mechanics
Unlike other protocols that segment markets or rely on automated market makers (AMMs) for distinct tokens, Term Structure integrates both primary and secondary markets into a cohesive fixed income framework. Users can leverage their LSTs and LRTs as collateral to borrow tokens at fixed rates and terms, setting desired interest rates and maturity dates in primary markets. When orders match, borrowers receive their tokens and must repay by the maturity date to reclaim their collateral. Lenders receive fixed income tokens upon maturity, which are redeemable for the principal and accrued interest. Secondary markets further enhance liquidity by facilitating real-time trading of these tokens through a live order book model.
Security and Efficiency Enhancements
Term Structure leverages zkTrue-up, a custom ZK Rollup, to eliminate gas fees for order creation and cancellation, ensure rapid settlement, and maintain data availability. Additionally, features like Forced Withdrawal and Evacuation Mode secure user assets in emergencies. The setup ceremony for zkTrue-up, completed in collaboration with ABDK, HashCloak, and Bware Labs, ensures the protocol’s robustness by eliminating “toxic waste” that could compromise the rollup’s integrity.
A Robust Ecosystem Backed by Key Investors
Prior to its mainnet launch, Term Structure secured $4.55 million in initial funding from prominent industry investors including Cumberland DRW, Decima Fund, HashKey Capital, Longling Capital, and MZ Web3 Fund. Its smart contracts and ZK circuits have been meticulously audited by top blockchain security firms ABDK and HashCloak, further validating the protocol’s reliability.
Conclusion
With the mainnet now live, Term Structure is set to roll out a suite of innovative features, such as trading APIs, Layer 2 swaps, and integration with platforms like Aave. The protocol also plans to expand collateral support to include tokens with higher yield potential and implement RWA token-collateralized financing and DeFi forward and futures contracts. These advancements will empower users with enhanced capabilities and cement Term Structure’s role as a leader in the evolving DeFi landscape. Keep up with the latest updates by following Term Structure on their social media channels.
About Term Structure
Term Structure democratizes fixed rate and fixed term borrowing and lending by offering a unique ZK Rollup solution with low transaction fees. It’s supported by Cumberland, HashKey Capital, Decima Fund, Longling Capital, and MZ Web3 Fund.
To learn more, visit Term Structure’s website and follow their social media for the latest updates: Website | X | Discord | Telegram | LinkedIn
This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
