Hong Kong, Hong Kong, June 3, 2024, Chainwire
Term Structure, the pioneering no-deposit fixed income protocol, has officially launched on its mainnet on . This launch introduces the first institutional, market-driven fixed income protocol, revolutionizing the way liquidity is provided between lenders and borrowers in decentralized finance (DeFi). Users can employ their LST and LRT as collateral to borrow tokens at fixed interest rates and terms and earn points and rewards for staking on primary markets, where an auction mechanism facilitates borrowing and lending. Meanwhile, secondary markets support trading of these fixed income tokens through a real-time order book to enhance liquidity.
Co-founder Jerry Li, speaking from a time-honored finance (TradFi) perspective, suggests that the lack of fixed income products in the market is a major factor hindering DeFi’s exponential growth. The Term Structure Protocol fills this gap by providing fixed-rate, fixed-term products that improve risk management and introduce a range of trading strategies previously unavailable in the DeFi ecosystem. These strategies are crucial for both institutional and individual investment planning.
With the launch of the mainnet, Term Structure aims to set up-to-date global standards for liquidity management and enable users to secure a fixed cost of funds. This is necessary to be able to leverage opportunities to potentially earn higher variable APRs or take advantage of a token price enhance. “Designed with institutional clients, traders and retail investors in mind, our mainnet represents a key development for DeFi. It allows users to leverage their digital assets at fixed rates and terms,” said Jerry Li.
Users can earn extra points and wager rewards by looping their LRT and LST in a term structure. Source: Term structure
Term Structure stands out by offering a unified fixed income market that integrates both the primary and secondary markets, unlike other protocols that separate them or employ AMM for different tokens. For starters, users can employ their LST and LRT as collateral to borrow tokens at fixed interest rates and terms, set preferred interest rates, and select maturity dates on primary markets. Once orders are matched, borrowers receive the loaned tokens and must repay their debts by maturity to recover their collateral. Meanwhile, lenders receive fixed-income tokens that can be redeemed for principal plus interest at maturity. Secondary markets support the buying and selling of these fixed income tokens via a real-time order book. Moreover, the protocol uses zkTrue-up, a customized ZK Rollup, to eliminate gas fees for placing and canceling orders, ensure swift completion and maintain data availability. Includes security features such as forced rollback and evacuation mode to safeguard user resources in emergency situations.
zkTrue-up allows users to withdraw funds at any time, eliminates gas fees for placing and canceling orders, and ensures swift transaction completion. Source: Term structure
Prior to the launch of its mainnet, Term Structure secured $4.55 million in seed funding in a series of seed fundraising rounds from industry-leading investors including Cumberland DRW, Decima Fund, HashKey Capital, Longling Capital and MZ Web3 Fund. To further improve the security and reliability of the protocol, the protocol’s sharp contracts and ZK circuits have been thoroughly reviewed by ABDK and HashCloak, two leading blockchain security companies. Moreover, the protocol completed the trusted configuration ceremony for zkTrue-up in collaboration with ABDK, HashCloak and Web3 software development company Bware Labs. This ensures the security of zkTrue-up by discarding “toxic waste” (i.e. data that could trick the system into accepting false evidence), thus preventing anyone from controlling it and eliminating the possibility of pulling the rug.
The protocol has also demonstrated significant market adoption with its testnet, displaying over 8,000 wallets and enabling over 2 million transactions. “Our recent testnet trading competition was met with enthusiastic reception, with 560 wallets actively engaging and executing over 314,000 transactions, demonstrating the robustness and readiness of our platform for broader adoption,” Li added.
Once the mainnet is launched, Term Structure intends to implement several groundbreaking features that will further enhance the platform’s capabilities. These include API trading, Layer 2 swaps, rollover to Aave and debt deregistration. The protocol will also support more potentially profitable tokens as collateral, implement RWA token-backed financing, and advance DeFi forwards and futures contracts. For the latest updates and information, please follow the protocol’s social media.
Information about the term structure
Term Structure introduces a distinct ZK Rollup solution, democratizing fixed and fixed rate lending and fixed income trading by offering low transaction fees. Supported by Cumberland, HashKey Capital, Decima Fund, Longling Capital and MZ Web3 Fund.
For more information, users can visit the Term Structure website at https://ts.finance/ and follow Term Structure updates on social media:
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contactNowalia WinataTerm structurenovalia.wi@tkspring.com
