Term Finance

Institutional Digital Asset Lending Made Simple and Affordable.

The Term Finance Protocol revolutionizes digital asset lending with a noncustodial approach to fixed-rate collateral loans, inspired by traditional tri-party repo agreements. Our unique model utilizes periodic auctions on Ethereum, where borrowers submit sealed bids and lenders present offers, collaboratively establishing a fair market-clearing interest rate. In this transparent process, over-valued bidders secure their loans while under-valued lenders fulfill their lending needs. Any unmatched bids and offers are paused until the next auction. At the end of each auction, borrowers receive their loan proceeds, and lenders obtain ERC-20 tokens for redemption. Our smart contracts streamline repayment and collateral management, ensuring a seamless experience for all participants.