Decentralized non-custodial lending protocol Term Finance announced it's live on the Ethereum mainnet, allowing users to borrow crypto at a fixed rate. The protocol said it will expand to multi-chain soon.
Term Finance uses an on-chain double-auction mechanism to determine the fixed-rates at which borrowers and lenders on the platform transact. In the auctions, lenders submit offers to lend and borrowers submit bids to borrow to the protocol. Once the auction is closed, the protocol determines a market clearing rate where all borrowers bidding at or above the clearing rate receive a loan, and all lenders offering at or below the clearing rate make a loan, each at the market clearing rate.
In February, Term Finance raised $2.5m in a seed funding round led by Electric Capital with participation from Coinbase Ventures, Circle Ventures and others.
Related: Fixed-rate Lending Protocol Term Finance Raises $2.5M with Coinbase Ventures Involved
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DeFi
Ethereum
Lending
