Term Structure Mainnet Launches, Revolutionizing DeFi with Market-Driven Fixed-Income Solutions
Hongkong, Hongkong, June 3rd, 2024, Chainwire
Term Structure, the pioneering non-custodial fixed-income protocol, has officially gone live with its mainnet on Ethereum. This launch introduces the first institutional-grade, market-driven fixed-income protocol, revolutionizing how liquidity is provided between lenders and borrowers in decentralized finance (DeFi). Users can use their LSTs and LRTs as collateral to borrow tokens at fixed rates and terms and earn points and staking rewards in the primary markets, where the auction mechanism facilitates borrowing and lending. Meanwhile, the secondary markets support the trading of these fixed-income tokens through a real-time order book to enhance liquidity.
Co-founder Jerry Li, speaking from a traditional finance (TradFi) perspective, suggests that the lack of fixed-income products in the market is a major factor hindering the exponential growth of DeFi. The Term Structure Protocol fills this gap by providing fixed-rate and fixed-term products that enhance 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 its mainnet launch, Term Structure aims to establish new global standards for liquidity management and allow users to secure a fixed cost of funds. This is essential for leverage opportunities to potentially earn higher floating APYs or to capitalize on token price appreciation. “Our mainnet, designed to cater to institutional clients, traders, and retail investors, marks a pivotal development in DeFi. It allows users to leverage their digital assets with fixed rates and terms,” said Jerry Li.
Users can earn additional points and staking rewards by looping their LRTs and LSTs on Term Structure. Source: Term Structure
Term Structure stands out by offering a unified fixed-income market that integrates both primary and secondary markets, unlike other protocols that separate them or use AMMs for different tokens. To get started, users can use their LSTs and LRTs as collateral to borrow tokens at fixed rates and terms, set their preferred interest rates, and choose maturity dates in the primary markets. When orders are matched, borrowers receive the borrowed tokens and must repay their debts by the maturity date to reclaim their collateral. Meanwhile, lenders receive fixed-income tokens redeemable at maturity for the principal plus interest. The secondary markets support the buying and selling of these fixed-income tokens through a real-time order book. Furthermore, the protocol leverages zkTrue-up, a customized ZK Rollup, to eliminate gas fees for placing and canceling orders, ensure fast finality, and maintain data availability. It includes safety features like Forced Withdrawal and Evacuation Mode to secure user assets in emergencies.
zkTrue-up allows users to withdraw their funds anytime, eliminates gas fees for placing and canceling orders, and achieves fast transaction finality. Source: Term Structure
Ahead of its mainnet launch, Term Structure secured initial funding of $4.55 million 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 protocol’s security and reliability, the protocol’s smart contracts and ZK circuits have been meticulously audited by ABDK and HashCloak, two leading blockchain security firms. Moreover, the protocol has completed the trusted setup 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 deceive the system into accepting false proofs), thereby preventing anyone from controlling it and eliminating the possibility of a rug pull.
The protocol has also demonstrated substantial market traction with its testnet, seeing over 8,000 wallets and facilitating more than 2 million transactions. “Our recent testnet trading competition saw enthusiastic participation, with 560 wallets actively engaging and executing over 314,000 transactions, showcasing the robustness and readiness of our platform for wider adoption,” added Li.
With the mainnet now live, Term Structure is set to roll out several innovative features that will further enhance the platform’s capabilities. These include trading API, Layer 2 swaps, roll to Aave, and debt de-register. The protocol will also support more potentially yield-bearing tokens as collateral, implement RWA tokens collateralized financing, and develop DeFi forwards and term futures. Please follow the protocol’s social media for the latest updates and information.
About Term Structure
Term Structure introduces a distinct ZK Rollup solution democratizing fixed-rate and fixed-term borrowing and lending as well as fixed income trading by offering low transaction fees. Backed by Cumberland, HashKey Capital, Decima Fund, Longling Capital, and MZ Web3 Fund.
For more information, users can visit Term Structure’s website at https://ts.finance/ and follow Term Structure’s social media updates:
