Term Finance, a fixed-term lending protocol, is launching on the Ethereum mainnet. The protocol allows for non-custodial, fixed-rate lending with collateral using the tri-party repurchase (repo) model commonly used in traditional banking. Unlike other fixed-term lending protocols that use automated market makers and liquidity pools, Term Finance uses a double-sided blind auction process to match borrowers and lenders based on their bidding preferences. This approach provides scalability and flexibility for institutional-level users, as liquidity providers do not have to lock up their liquidity indefinitely. The long-term vision for Term Finance is to create a DeFi native benchmark yield curve using repo tokens maturing at different intervals.
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