Intro.
Term Structure is a full-fledged peer-to-peer bond protocol powered by ZK-rollup.
On Term Structure, people can borrow and lend digital assets to each other for a pre-determined duration and a fixed interest rate.
Markets
Primary Markets (Core Market)
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hourly batch auction market. Borrowers and lenders match their desired amount and interest rates through a batch auction mechanism.
Lender:
Collateralize the base token (ETH, wBTC, USDT, USDC, and DAI) or other supported collateral(wstETH and sDAI)
decide how much interest they are willing to receive
Got bond tokens(The TSB above, ERC20 based) & fixed interest
Borrower:
decide how much interest they are willing to pay
Get the loan
Smart contract:
Hold the collateral
Generate the debt record
Batched Auction Mechanism
In batch auctions, borrowers and lenders are eligible to place orders of any amount greater than the minimum bid amount and interest rate within the bidding window before the cut-off time for the coming auction.
matching process: automatically sorting the interest rates and amounts that match the orders from borrowers and lenders
More details at Link
Borrower info:
Collateral token type
Collateral amount
Borrowed token type
Borrowed amount
Borrowed tenor (period)
Highest acceptable interest rate for borrowing
Lenders info:
lending token type
Amount
Tenor (period)
lowest acceptable interest rate level
Matching process:
lenders are sorted by the level of interest rates in their orders.
borrowers are sorted by the time when they place their orders.
The matching process is sequential and follows the sorted orders from borrowers. Each borrower's order is matched with all eligible lender orders to find the unified lending rate when the entire amount of the borrow order is fulfilled or there are no more eligible lend orders. The highest interest rate level in any matching will be the unified lending rate for both borrowers and lenders in that round of matching, and all lenders in this round will receive the same interest rate.
LTV: * 75% for wBTC or ETH * 90% for stablecoins (USDT, USDC, and DAI) further info
Secondary Markets
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Buy & Sell bonds. Orderbook exchange mechanism.
Buyer & seller:
- buy/sell TSB (term structure bond token)
Retail user:
- get fixed-income instruments
Primary dealer:
- Providing significant liquidity & facilitate trades in the two markets
Repo Market
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Using TSB as collateral, short-term borrowing for funding and leverage purposes
Borrower (TSB holder):
- collateralize TSB for loans