Term Structure Mainnet Launch Revolutionizes DeFi Risk and Liquidity Management
Term Structure, a pioneering platform in the decentralized finance (DeFi) space, has officially launched its mainnet. The platform aims to transform risk and liquidity management in DeFi by introducing a peer-to-peer fixed-income protocol. This development is a significant stride in bridging traditional finance (TradFi) mechanisms with the burgeoning field of DeFi, leveraging blockchain technology to offer fixed-term and fixed-rate lending and borrowing options through auctions and a secondary market for trading fixed-income tokens.
Historically, fixed-income markets have played a crucial role in the global financial system, providing stable financing avenues for governments and corporations while offering investors predictable returns. Despite the rapid growth of DeFi, especially noted during the DeFi summer of 2020, the sector lacked a fixed-income market. Term Structure addresses this gap by facilitating primary markets for lending and borrowing, and secondary markets for the trading of fixed-income tokens, employing innovative tools such as zkTrue-up, a customized ZK-rollup, to enhance transaction speed, data availability, and eliminate gas fees for certain operations.
The platform offers a unique opportunity for users to manage their investment strategies effectively, catering to both conservative and aggressive investors through a market-driven, unified fixed-income market. It supports mainstream collateral tokens, fixed tenures, and allows users to specify their preferred interest rates and amounts, further enriching the DeFi ecosystem.
Ahead of its June mainnet launch, Term Structure had achieved several milestones, including securing $4.45 million in seed funding from leading investors, launching a testnet in November 2023, and successfully conducting a testnet trading competition in March 2024 that demonstrated the platform’s robustness and user trust. The protocol’s future plans include introducing new features and tools to enhance its service offerings, aiming to address real-world financial challenges and improve financial inclusivity and openness through blockchain technology.
Jerry Li, the co-founder of Term Structure, emphasizes the potential of blockchain to solve practical problems and envisions the protocol becoming as indispensable to users globally as digital financial services are today. This vision underscores a commitment to leveraging blockchain for practical, everyday needs, thereby contributing to the maturation and accessibility of the DeFi space.