Term Labs, the first scalable fixed-rate lending protocol, has unveiled Strategy Vaults, institutionally curated automated fixed-rate DeFi lending for passive yield optimization. Private beta access will be available on Ethereum and Avalanche Mainnet.
Established DeFi institutions will curate the initial yield strategies. Launch partners include K3, August Digital, Edge Capital, Re7 Capital, Shorewoods, and others.
Built on Yearn V3, Strategy Vaults address the complexity of fixed-rate lending by automating liquidity management, and loan rollovers. Early users can explore Strategy Vaults’ new “set it and forget it” interface, eliminating the need for active portfolio management.
“We chose to specialize in fixed-rate lending because we believe finance should be simple, transparent, accessible and secure,” said Dion Chu, Founder and CEO of Term Labs. “We’re pleased to give users a preview of our new Strategy Vaults, which further abstract away DeFi complexities, allowing them to focus on their investment goals.”
“Term’s fixed-rate lending and passive lending vaults address a large gap in the market for tools that enhance capital efficiency and provide access to stable yields,” said Aya Kantorovich, Co-Founder of August Digital. “Through a combination of sophisticated lending features (fixed interest rates, flexible terms, diverse collateral options) and automated passive yield vaults, Term paves the way for both active and passive DeFi users to pursue broader trading strategies, driving greater DeFi adoption.”
By integrating with Term Finance’s existing infrastructure, Strategy Vaults simplify fixed-term loan management and reduce the operational burden on users. The shared gas fee structure and curated strategies contribute to economies of scale and a more accessible user experience.
Launching publicly in August 2023, Term has cleared over $220 million in total volume through weekly auctions. In November, Term unveiled its Blue Sheets Simple-earn product, the first in a suite of initiatives to broaden access to collateralized fixed-rate on-chain lending.
Term Labs is backed by $8 million in funding from marquee investment firms including Electric Capital, a16z CSX, Coinbase Ventures, Circle Ventures, Maelstrom (Arthur Hayes), Ava Labs, Blizzard Fund, Robot Ventures and MEX Ventures. Angel investors include Ether.fi founder and CEO Mike Silagadze, Paper Ventures founder and GP Danish Chaudhry, Neoclassic Capital founder and Managing Partner Steve Lee, among others.
To be the first to hear news about the project, subscribe to Term’s newsletter: https://www.term.finance/newsletter.
About Term Labs
Term Labs is a blockchain research and development company dedicated to creating robust, transparent, and scalable fixed-rate lending solutions onchain. The founding team’s combined experience in finance and big tech is the foundation for its innovative approach to DeFi solutions. Its founders have a track record of managing $1b+ portfolios on both the sell side and buy side at Citibank, Morgan Stanley, D.E. Shaw, and other institutions, as well as establishing interest rate benchmarks at exchanges that have done trillions in volume. They also have substantial technical backgrounds, including experience at the Amazon blockchain group, Planet Labs, and have helped build critical infrastructure at Bloomberg.
Links: Website | X [Twitter] | Discord | Telegram