TermMax, a fixed-rate lending protocol built by Term Structure Labs, has announced a strategic investment from YZi Labs to develop on-chain bond market infrastructure. Investment terms were not disclosed.
The protocol has raised more than $8 million to date, with earlier backing from Cumberland DRW, HashKey Capital, Decima Fund, Longling Capital, and MZ Web3 Fund. TermMax was selected for YZi Labs' EASY Residency Season 3.
Operational Expansion
Live on mainnet since April 2025, TermMax operates across 10 EVM-compatible blockchain networks. The protocol currently manages 60 fixed-rate markets, 40 strategy vaults, tens of millions of dollars in total value locked, and over 1.5 million registered wallets. Keyrock, Hardcore Labs, Edge Capital, and Origami serve as curators managing strategy vaults. The $TMX token completed its token generation event on August 25.
Addressing Market Infrastructure Gaps
YZi Labs identified underdeveloped financial applications around tokenized assets, particularly in credit, collateral management, risk transfer, and structured products. Options and risk-transfer mechanisms remain notably absent from the tokenized asset ecosystem.
TermMax has integrated tokenized equity markets, launching its first fixed-rate borrowing market accepting tokenized U.S. equities as collateral through Ondo Global Markets in January 2026, followed by Binance's bStock. The protocol went live on Robinhood Chain in August, enabling positions in QQQ, SPY, and NVDA against USDG.
TermMax Alpha and Physical Delivery Options
TermMax Alpha introduces physical delivery options without liquidation before expiry. Positions settle through physical delivery at expiry rather than being subject to liquidation during volatile trading periods. This design addresses limitations of perpetual futures in markets with limited liquidity.
The protocol's liquidation mechanism settles collateral through physical delivery to lenders rather than market sales, accounting for differences in liquidity between major assets like ETH and tokenized equities with smaller trading depths.
Institutional Services
TermPrime, the protocol's institutional offering, completed its first live trade on Canton Network in late June and has expanded its counterparty network to nine institutions. TermMax runs an early validator node on Canton. The protocol holds a DeFiSafety Process Quality Review score of 93%, matching Aave V3.
