Rain tapping on the glass window, I was half-asleep when the mattress suddenly sank, a tall British guy climbed on top, blue hair pressed against his forehead, yellow eyes flashing a mischievous smile in the dark.

He said he jumped in from the balcony just to sleep with me, leaned down, pressed his big hand, and slid directly into my quilt. I suddenly realized that I haven't finished reading @TermMaxFi's white paper.
Recently, while reviewing the white paper of TermMaxFi, I found their approach to solving DeFi fixed interest rate issues quite interesting. Unlike many projects that just package concepts simply, they have a complete logic from mathematical models to technical architecture.
The white paper directly addresses the core problem of DeFi lending: interest rate volatility is too high. In traditional finance, 95% of the $130 trillion bond market is fixed-rate, and 85% of US mortgages are fixed-rate. But in DeFi, almost all are floating-rate, and this uncertainty makes many serious financial strategies impossible to run on-chain.
TermMaxFi's solution is based on a three-token mathematical model. Simply put, they split a loan into FT and XT tokens: FT is a zero-coupon bond issued at a discount, redeemed at face value at maturity; XT handles the interest part. These two tokens always sum up to the value of the debt token. This design makes fixed interest rates mathematically feasible, rather than relying on centralized oracles or human intervention.
What I find even more interesting is their range order system. Traditional DeFi lending is either algorithmically priced or order book-based, giving users little pricing power. TermMaxFi allows users to customize interest rate curves—for example, willing to pay 5% for the first million, then 7% beyond that. All user orders are aggregated into a single market, ensuring liquidity while giving users the freedom to set prices.
The white paper also explains in detail why they shifted from an initial order book model to an AMM model. Early versions used ZK technology and auction mechanisms but found liquidity too fragmented and user experience too complex. The current AMM design allows loans of different durations to interoperate within the same pool, increasing capital utilization from 30-40% to over 85%.
In terms of technical architecture, they divided it into four layers: the foundation is the mathematical model, the middle is the range order engine, above that are user functionality modules, and the outermost layer is the ecosystem integration interface. This layered design ensures the protocol has both core certainty and flexible expandability.
On security, the white paper mentions multiple audits, 24/7 on-chain monitoring, and a multi-layer security architecture. Especially for DeFi products involving fixed interest rates and leverage, security design must be prioritized.
The white paper also clearly defines their market positioning: not to replace existing floating-rate protocols but to fill the gap of fixed interest rates in DeFi. The target users are also clear—institutions needing deterministic costs, individuals planning long-term, and professional traders requiring stable foundations to build more complex strategies.
Overall, this white paper is solid in technical detail, without much empty marketing talk. For DeFi to truly mature, products like this that allow both capital providers and borrowers to plan with confidence are indeed necessary.
Finally, I want to say this project team is good—already 800 members, and I’m not fishing for you guys. There really is a British guy here. Pictures or it didn’t happen. 🌚