Introducing Term V2: The next layer of fixed-rate DeFi.

Term V2 brings a peer-to-peer order book and atomic execution layer.

With Term V2 live, the complete experience of Terminal 1 — an interface and routing system for fixed-rate markets— is unlocked. Users can express capital stays productive, then route and execute positions in a single transaction.

True fixed-rate, fixed-term markets, made executable.

What’s live ↓

Please find the @merkl_xyz campaigns for the USDC and ETH Vaults Recovery:

USDC: app.merkl.xyz/opportunities/…

ETH: app.merkl.xyz/opportunities/…

The first distribution will be able to claim through Dec 1, 2026 UTC.

Please do not click any other links below.

Please find the @merkl_xyz campaigns for the USDC and ETH Vaults Recovery:

USDC: app.merkl.xyz/opportunities/…

ETH: app.merkl.xyz/opportunities/…

The first distribution will be able to claim through Dec 1, 2026 UTC.

Please do not click any other links below.

Update: All Term Meta Vaults were shut down and dao governance roles have been revoked. This shutdown is irreversible and permanently prevents further deposits. Withdrawals remain open.

Today's incident involved Term Vault governance. Based on our investigation so far, the underlying Term protocol and its direct borrowing and lending markets have not been affected. We are continuing to verify scope.

We are coordinating with external security teams on remediation and recovery. If a shortfall remains, we will explore paths to address it.

We will continue to share verified updates here. For your security, rely only on communications from @term_labs and beware of impersonators.

We are aware of a governance exploit impacting Term vaults.

We will share more details once it has been further investigated.

In a fixed-rate lending vault, what’s a share worth before the loans backing it mature?

If someone withdraws today, should they get none of the unrealized interest? All of it? Or somewhere in between?

Every on-chain fixed-rate portfolio eventually has to answer this question. r:

Term Strategy Vaults have been live in production since February 2025, and as fixed-rate adoption grows, the problem they solve is about to become everyone's problem. So it's worth explaining what they are.

The Term Strategy Vault is tokenized fixed-income portfolio whose NAV, maturity profile, credit eligibility, and concentration limits are calculated and enforced by the smart contracts themselves. While this logic was first implemented in an ERC-4626 vault, the portfolio management logic is not limited to ERC-4626 and can be ported more generally.

Why is this complexity needed?

Fixed-rate portfolios are more complex than floating-rate loans carried at par. Because capital is locked for a defined term and the interest rate is fixed, portfolio construction requires explicit parameters and constraints around maturity, credit, and concentration. And once liquidity is committed, positions cannot be easily rebalanced back toward target allocations. Curators therefore need to answer—and have a mechanism for enforcing—a set of fundamental portfolio management questions:

* How far out am i willing to extend liquidity, on average, across the book?
* Do we have enough short-term liquidity to handle sudden withdrawals?
* What kinds of collateral do I accept, and what haircuts do I require for each of them?
* What level of diversification do I want to maintian across loans in the book?
* How do I enforce these constraints in permissionless markets?

On the depositor side there is also a unique question to be answered when making withdrawal:

* What is the "fair" valuation of a share backed by loans that are yet to mature? Should depositors receive none of the unrealized interest, all of it, or somewhere in between?

The answers to these questions are well-trodden in TradFi and the math is mostly not difficult in isolation. Portfolios are generally marked at NAV, with assets valued based on market price where available, or discounted to present value using an estimated interest rate curve where market prices are unavailable.

While the math for calculating present value (PV) given an interest rate is trivial, determining what curve represents fair value, interpolating maturities, handling stale or missing oracle observations, and dealing with precision and rounding is where it gets tricky.

That implementation complexity is the part we think is most interesting.

To our knowledge, Term Strategy Vaults are the first onchain implementation of this kind of fixed-income portfolio management framework: marking fixed-rate loans to NAV while enforcing maturity, collateral, margin, and concentration constraints directly in smart contracts.

The contracts are fully open source here: github.com/term-finance/y…

Over coming days, I’ll dig into some of the individual pieces, starting with how we built the interest-rate oracles used to value loans before maturity.

Fixed-rate DeFi is getting the attention it deserves.

Markets are only the start. On Term, users can:

• Loop positions in one click
• Compare carry opportunities at intended size
• Refinance variable debt into fixed terms across protocols

The full execution stack that institutions demand.

Two weeks in, Term V2 markets are taking shape.

$2.6M in cumulative volume across stables and ETH

From PTs and BTC to gold and staked ETH, borrowers and lenders are executing across assets, rates, and maturities.

See what’s live in Open Markets ↓

🔗app.term.finance

A fixed-rate position can also be the foundation for a leveraged strategy.

With Loop In, choose the collateral, target leverage, rate, and maturity.

Term V2 coordinates the swaps required to build the full position without manually chaining each transaction

Try one-click looping on Term:
🔗app.term.finance/order-markets

Not every fixed-rate position starts with a new order.

Have variable-rate debt on Aave or Morpho?

Term's Refinance In is another route.

Select the position and compare the available terms. Term V2 migrates the debt and collateral into a fixed-rate position without manual m app

DeFi Frontier is live 🚀

Inside:

✅ Fixed rate looping w @term_labs + @re
✅ 3x tokenized STRC w @torosfinance + @Ondo
✅ @DeFiSaver's new wallet checker tool
✅ @WClemente is "exploring the outlook for Bitcoin"
✅ STRC Update

Full Report 👇

the-edge.xyz/p/defi-frontie…

Term V2 intent based orderbook for fixed-term working as designed good to see some momentum here and validation of the V2 model.

This morning a lender posted 426K USDC at 9.00% fixed against PT-reUSD, matched to PT maturity.

Fully filled in ~2 hours.

Hit our dms if you're interested in borrowing fixed against PT-reUSD.

Making a fixed-rate order shouldn’t require capital to wait with it.

Set the rate, size, collateral, maturity, and expiry. Then choose the funding source: your wallet, Aave, Morpho, or a supported ERC-4626 vault.

Capital stays at its source until Term executes the match

Place your orders at:
🔗app.term.finance/order-markets

Term v2 covered in this weeks @todayindefi newsletter. Check it out 👇