Hong Kong, Hong Kong, June 3, 2024, Chainwire
Term Structure, the pioneering non-custodial fixed income protocol, officially launched with its mainnet on . This launch features the first market-driven, institutional-grade fixed income protocol, revolutionizing the way liquidity is provided between lenders and borrowers in decentralized finance (DeFi). Users can use their LST and LRT as collateral to borrow tokens at fixed rates and terms and earn points and stake rewards in primary markets, where the auction mechanism facilitates lending and borrowing. Meanwhile, secondary markets support the trading of these fixed income tokens through a real-time order book to improve 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 improve risk management and introduce a variety of trading strategies previously unavailable in the DeFi ecosystem. These strategies are crucial for both institutional and individual investment planning.
With the launch of its mainnet, Term Structure aims to set new global standards for liquidity management and enable users to lock in a fixed cost of funds. This is essential to take advantage of opportunities to potentially earn higher floating APYs or capitalize on token price appreciation. “Our mainnet, designed to serve institutional clients, traders and retail investors, marks a fundamental 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 rewards by loop staking their LRT and LST on the 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 use AMM for different tokens. To get started, users can use their LST and LRT as collateral to borrow tokens at fixed rates and terms, set their preferred interest rates, and choose expiration dates on primary markets. When orders are matched, borrowers receive the borrowed tokens and must pay their debts before the due date to claim their collateral. Meanwhile, lenders receive fixed income tokens redeemable at maturity for principal plus interest. Secondary markets support the buying and selling of these fixed income tokens through a real-time order book. Additionally, the protocol leverages zkTrue-up, a custom ZK Rollup, to eliminate gas fees for placing and canceling orders, ensure fast completion, and maintain data availability. Includes safety features such as forced retreat and evacuation mode to protect user assets in the event of an emergency.
zkTrue-up allows users to withdraw their funds at any time, eliminates gas fees for placing and canceling orders, and achieves quick transaction finality. Source: Term structure
Prior to the launch of its mainnet, Term Structure raised seed 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 enhance the security and reliability of the protocol, the protocol's smart contracts and ZK circuits have been meticulously audited by ABDK and HashCloak, two leading blockchain security firms. Additionally, 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 trick the system into accepting false evidence), thus preventing anyone from controlling it and eliminating the possibility of theft.
The protocol has also demonstrated substantial market traction with its testnet, seeing over 8,000 wallets and facilitating over 2 million transactions. “Our recent testnet trading competition saw enthusiastic participation, with 560 wallets actively participating and executing over 314,000 transactions, demonstrating the strength and readiness of our platform for broader adoption,” Li added.
With the mainnet now available, Term Structure is ready to implement several innovative features that will further enhance the platform's capabilities. These include trading API, layer 2 exchanges, transfer to Aave, and debt deregistration. The protocol will also support more potentially profitable tokens as collateral, implement collateralized financing with RWA tokens, and develop DeFi forward contracts and futures. Follow the protocol's social media channels for the latest updates and information.
About the term structure
Term Structure introduces a distinctive ZK Rollup solution that democratizes fixed-rate and term loans and loans, 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 the Term Structure website and follow Term Structure social media updates:
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ContactNovalia WinataTerm structure[email protected]
This article was originally published on Chainwire.
