• Term Finance, a DeFi protocol for fixed interest borrowing, is preparing to launch at the end of March.
• Term Labs, the platform’s builder, raised $2.5 million in seed funding led by Electric Capital with participation from Coinbase Ventures, Circle Ventures and others.
• The goal of Term Finance is to create a benchmark yield curve for the DeFi space that can facilitate short-term borrowing and lending transactions.
Term Finance Readies for Business
Term Finance, a decentralized finance (DeFi) protocol for fixed interest borrowing, is preparing to go live around the end of March. The platform aims to bring fixed-rate lending and interest-rate derivatives to DeFi and provide a benchmark yield curve for the space.
Funding Round Led by Electric Capital
Term Labs, the platform’s builder, raised $2.5 million in a seed round led by Electric Capital with participation from Coinbase Ventures, Circle Ventures and others. There was also angel investment from the founders of DeFi stalwarts Aura, Balancer, Hashlow and Llama.
Goal of Creating Benchmark Yield Curve
The goal of Term Finance is to create a benchmark yield curve for the DeFi space that can facilitate short-term borrowing and lending transactions similar to traditional centralized finance operations without any hidden transaction costs or slippage. According to Dion Chu (founder & CEO of Term Labs), this will be „the lubricant of entire financial market“.
Risk Mitigation Measures in Place
In order to reassure institutional investors after last year’s crypto scandals, it is important that risk mitigation measures are put into place such as over-collateralized loan agreements and tamper-proof digital contracts which were available on most decentralized lending platforms last year when centralized ones failed due to lack of trustworthiness or security breaches.
Conclusion
Overall this new platform looks promising as it provides an efficient way for users to borrow money securely while allowing lenders an opportunity to earn returns on their investments without having any hidden fees or risks involved in their transactions. This could potentially revolutionize how people access capital in future years as more people become interested in investing within cryptocurrencies and blockchain technology applications like this one!