Term Finance
The Term Finance Protocol provides noncustodial fixed-rate collateral loans, drawing inspiration from conventional tri-party repo setups. It employs distinctive recurring auctions in which borrowers present sealed bids while lenders make offers, establishing the market-clearing interest rate. Bidders above the rate receive loans, whereas lenders below the rate help facilitate loans. Outstanding bids and offers still exist. Following auctions, borrowers obtain loan funds, while lenders acquire ERC-20 tokens for exchange. Intelligent contracts manage repayments and collateral oversight.
