Term Structure Launches Mainnet on Ethereum,
Pioneering Institutional-Grade Fixed-Income Protocol in DeFi
Term Structure, the groundbreaking non-custodial fixed-income protocol, has officially launched its mainnet on Ethereum, marking a significant milestone in the DeFi space. This innovative platform introduces the first institutional-grade, market-driven fixed-income protocol, revolutionizing liquidity provision between lenders and borrowers.
Key Features of Term Structure
With Term Structure, users can leverage their LSTs (Liquid Staking Tokens) and LRTs (Liquidity Reserve Tokens) as collateral to borrow tokens at fixed rates and terms. The protocol offers primary and secondary market functionalities, allowing users to earn points and staking rewards through an auction mechanism in the primary market. The secondary market supports the trading of these fixed-income tokens through a real-time order book, enhancing liquidity.
Jerry Li's Vision and TradFi Perspective
Co-founder Jerry Li emphasized the importance of fixed-income products in the exponential growth of DeFi. From a traditional finance (TradFi) perspective, he identified the absence of such products as a major growth barrier. Term Structure addresses this gap by providing fixed-rate and fixed-term products, which enhance risk management and introduce a range of previously unavailable trading strategies. These are crucial for both institutional and individual investment planning.
Mainnet Launch and Future Prospects
The mainnet launch of Term Structure aims to establish new global standards for liquidity management. It allows users to secure a fixed cost of funds, essential for leveraging opportunities to potentially earn higher floating APYs or 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.
Integrating Primary and Secondary Markets
Term Structure stands out by integrating primary and secondary markets, unlike other protocols that separate them or use Automated Market Makers (AMMs) for different tokens. Users can borrow tokens at fixed rates and terms by using their LSTs and LRTs as collateral, 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. Lenders, in turn, receive fixed-income tokens redeemable at maturity for the principal plus interest.
zkTrue-up Technology
The protocol leverages zkTrue-up, a customized ZK Rollup, to eliminate gas fees for placing and canceling orders, ensure fast transaction finality, and maintain data availability. zkTrue-up includes safety features like Forced Withdrawal and Evacuation Mode to secure user assets in emergencies, allowing users to withdraw their funds anytime without incurring gas fees.
Funding and Security
Ahead of its mainnet launch, Term Structure secured initial funding of $4.55 million in seed rounds from prominent investors, including Cumberland DRW, Decima Fund, HashKey Capital, Longling Capital, and MZ Web3 Fund. To ensure security and reliability, the protocol's smart contracts and ZK circuits were audited by ABDK and HashCloak. Additionally, the trusted setup ceremony for zkTrue-up was completed with the collaboration of ABDK, HashCloak, and Bware Labs, ensuring the elimination of "toxic waste" to prevent system manipulation and rug pulls.
Testnet Success and Market Traction
Term Structure demonstrated substantial market traction with its testnet, engaging over 8,000 wallets and facilitating more than 2 million transactions. A recent testnet trading competition saw 560 wallets actively participating and executing over 314,000 transactions, showcasing the platform's robustness and readiness for wider adoption.
About Term Structure
Term Structure introduces a distinct ZK Rollup solution that democratizes fixed-rate and fixed-term borrowing and lending as well as fixed income trading by offering low transaction fees. The protocol is backed by industry-leading investors, including Cumberland, HashKey Capital, Decima Fund, Longling Capital, and MZ Web3 Fund, positioning it as a trailblazer in the DeFi landscape.
