DeFi
Futures Structure Mainnet Launches, Revolutionizing DeFi with Market-Driven Fixed Income Solutions
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Hong Kong, Hong Kong, June 3, 2024, Chainwire – The structure of the term, the pioneering non-custodial fixed income protocol, has officially launched its mainnet on Ethereum. This launch introduces the first institutional-grade, market-driven 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 staking rewards on primary markets, where the auction mechanism facilitates borrowing and lending. Meanwhile, secondary markets support the trading of these fixed-income tokens with 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 range of trading strategies previously unavailable in the DeFi ecosystem. These strategies are crucial for planning institutional and individual investments.
With its mainnet launch, Term Structure aims to set new global standards for liquidity management and enable users to secure a fixed cost of funding. This is essential to take advantage of opportunities to potentially earn higher floating APYs or capitalize on token price appreciation. “Our mainnet, designed to meet the needs of institutional clients, traders and retail investors, marks a crucial development in DeFi. It allows users to mine their digital assets with fixed rates and conditions,” said Jerry Li.
Users can earn additional points and looping rewards by looping their LRT and LST on the futures structure. Source: Structure of terms
Term Structure sets itself apart by offering a unified bond market that integrates both primary and secondary markets, unlike other protocols that separate them or use AMMs 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 maturity dates on primary markets. When orders are matched, borrowers receive the borrowed tokens and must repay their debts before the due date to recover 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 rapid finality, and maintain data availability. It includes security features such as force removal and escape mode to secure user assets in case of emergency.
zkTrue-up allows users to withdraw their funds at any time, eliminates gas fees for placing and canceling orders, and allows transactions to be completed quickly. Source: Structure of terms
Ahead of its mainnet launch, Term Structure secured $4.55 million in seed funding in a series of seed fundraising rounds from high-profile investors including Cumberland DRW, Decima Fund, HashKey Capital, Longling Capital and MZ Web3 Fund. To further improve 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 companies. Additionally, the protocol completed the trust 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 eliminating “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 ‘a draw.
The protocol has also demonstrated considerable 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 committing and executing over 314,000 trades, demonstrating the robustness and readiness of our platform for wider adoption,” Li added.
With the mainnet now operational, Term Structure is set to roll out several innovative features that will further enhance the platform’s capabilities. These include trading API, layer 2 swaps, moving to Aave and debt write-off. The protocol will also support more potentially yield-generating tokens as collateral, implement RWA token-collateralized funding, and develop DeFi futures and futures contracts. Please follow the protocol’s social media channels for the latest updates and information.
About term structure
The structure of the term introduces a distinct ZK Rollup solution democratizing fixed rate and fixed term borrowing and lending 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 at https://ts.finance/ and follow Term Structure updates on social media:
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Contact
Novalia Winata
The structure of the term
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