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Term Structure, the leading non-custodial fixed income protocol, has officially gone live with its mainnet on Ethereum. This launch introduces the first institutional-grade, market-driven fixed income protocol that revolutionizes the provision of liquidity between lenders and borrowers in decentralized finance (DeFi).
Users can use their LSTs and LRTs as collateral to borrow tokens at fixed rates and terms and earn points and staking rewards in primary markets where the auction mechanism makes borrowing and lending easier. Secondary markets, meanwhile, support the trading of these fixed income tokens through a real-time order book to increase liquidity.
Speaking from a traditional finance (TradFi) perspective, co-founder Jerry Li suggests that the lack of fixed income products in the market is a key factor hindering the exponential growth of DeFi. Term Structure Protocol fills this gap by providing fixed interest and fixed maturity products that improve risk management and offer a range of trading strategies not previously available in the DeFi ecosystem. These strategies are vital for both corporate and individual investment planning.
With the launch of the mainnet, Term Structure aims to establish new global standards for liquidity management and enable users to secure a fixed cost of funds. This is necessary for leverage opportunities to potentially earn higher floating APYs or take advantage of the rise in token prices. “Designed to appeal to institutional customers, investors and retail investors, our mainnet marks a pivotal evolution in DeFi. It allows users to leverage their digital assets with fixed rates and conditions,” said Jerry Li.
Term Structure stands out by offering a unified fixed income market that integrates both primary and secondary markets, unlike other protocols that use AMMs. To get started, users can borrow tokens at fixed rates and terms using their LST and LRT as collateral, set their preferred interest rates, and choose maturity dates in primary markets.
When orders are matched, borrowers receive the borrowed tokens and must repay their loans by the maturity date to get their collateral back. Meanwhile, lenders receive fixed income tokens that can be redeemed for principal plus interest at maturity. Secondary markets support the trading of these fixed income tokens through the real-time order book.
Additionally, the protocol leverages zkTrue-up, a customized ZK Rollup to eliminate gas fees for placing and canceling orders, provide fast finality, and maintain data availability. It includes security features such as Forced Retreat and Evacuation Mode to secure user assets in case of emergency.
Ahead of its mainnet launch, Term Structure has raised $4.55 million in seed funding 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 rigorously audited by two leading blockchain security firms, ABDK and HashCloak.
Additionally, the protocol completed the trustworthy installation 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 checking it and eliminating the possibility of the rug being pulled.
The protocol also demonstrated significant 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 engaged and processing over 314,000 transactions, demonstrating the robustness of our platform and readiness for wider adoption,” Li added.
With the mainnet now live, Term Structure is preparing to roll out a variety of innovative features that will further enhance the platform’s capabilities. These include the trading API, Layer 2 exchanges, migration to Aave, and debt deregistration. The protocol will also support higher yield tokens as collateral, implement collateralized financing of RWA tokens, and develop DeFi futures and futures trading. Please follow the protocol’s social media for the latest updates and information.
About Term Structure
Term Structure offers a different ZK Rollup solution that democratizes fixed-rate and fixed-term borrowing and lending as well as fixed income trading by offering low transaction fees. Cumberland is backed by HashKey Capital, Decima Fund, Longling Capital and MZ Web3 Fund.
For more information, users can visit Term Structure’s website at https://ts.finance/ and follow Term Structure’s social media updates:
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