Terminal Finance is a decentralized exchange (DEX) specialized for profitable assets and yield-generating stablecoins, developed on the Converge blockchain by Ethena Labs and Securitize.
This platform integrates Ethena's sUSDe as the underlying asset, applying a concentrated liquidity and yield-skimming mechanism to optimize capital efficiency, reduce risks, and position itself as a liquidity center for profitable stablecoins.
MAIN CONTENT
Terminal Finance is a DEX for institutions, focusing on yield-generating stablecoins and profitable assets.
The platform uses sUSDe as the underlying asset, integrating the yield-skimming mechanism and concentrated liquidity.
Positioning itself as a Liquidity Hub on Converge, optimizing capital and reducing Impermanent Loss.
What is Terminal Finance?
Terminal Finance is a DEX focused on trading yield-generating stablecoins and digital financial assets for institutions, built on the Converge blockchain.
The project aims to become a "Liquidity Hub" in the digital financial ecosystem, with the goal of providing deep and stable liquidity.
This is a rapidly growing segment as the demand for tokenizing traditional assets and yield-generating stablecoins increases.
Which blockchain is Terminal Finance built on?
Terminal Finance is developed on Converge, an EVM network implemented in collaboration between Ethena Labs and Securitize, optimized for digital financial assets.
Choosing Converge allows the project to inherit EVM-compatible infrastructure while expanding connectivity with other DeFi solutions. Converge is seen as an "organization-friendly" platform, aligning with Terminal's strategy.
"Converge is designed to create a secure bridge between traditional financial assets and blockchain, making it easier for organizations to participate in DeFi."
Securitize Report, 2024
What is the sUSDe stablecoin?
sUSDe is the yield-generating stablecoin version of Ethena, used as the underlying asset for Terminal Finance.
Each sUSDe token is wrapped and automatically increases supply based on accrued yield, while still maintaining a 1:1 exchange rate with USDe when converted. This design helps maintain price stability during trading while optimizing profits for holders.
Why did Terminal Finance choose sUSDe as the underlying asset?
sUSDe provides a balance between stability and yield, meeting the liquidity needs of organizations in DeFi.
Integrating sUSDe as the base currency helps Terminal Finance maintain trading prices close to USD while optimizing capital through an automatic yield accumulation mechanism. This is a competitive advantage compared to traditional DEXs that only use non-yield stablecoins.
"Profitable stablecoins will be one of the main drivers pushing DeFi into the next phase."
Guy Young, CEO of Ethena Labs, 2024
How does the yield-skimming mechanism in Terminal Finance work?
Yield-skimming is a mechanism to separate accrued yield from liquidity pools to reduce Impermanent Loss and stabilize trading exchange rates.
This provides a transparent trading experience, limits risks for LPs, and creates appeal for organizations that require stable yield. This is also one of the improvements that make Terminal different from popular DEXs.
What are the benefits of the concentrated liquidity model?
Terminal Finance applies a Concentrated Liquidity model, allowing liquidity provision at specific price ranges to enhance capital efficiency.
This approach is similar to Uniswap v3 but is refined to suit yield-generating assets. Combined with yield-skimming, this model helps Terminal maintain high liquidity depth while limiting price volatility in stablecoin trading.
How is Terminal Finance positioned within the Converge ecosystem?
The project positions itself as a liquidity center (Liquidity Hub) for yield-generating stablecoins and tokenized assets on Converge.
This helps Terminal become a crucial piece in the global financial digitization process, where the demand for transparent and efficient liquidity is key. With the backing of Ethena Labs and Securitize, Terminal is expected to quickly scale.
"Liquidity is the backbone of all financial markets. Terminal is building this foundation for the era of yield-generating stablecoins."
Messari Report, 2024
What are the outstanding features of Terminal Finance?
The differentiating points of Terminal include: focusing on institutional trading, integrating sUSDe, applying yield-skimming, and using concentrated liquidity.
These factors combine to create a competitive advantage compared to conventional DEXs, which primarily serve retail users and do not optimize for yield-generating assets. This is a promising niche market that Terminal is pioneering.
Traditional DEX criteria Terminal Finance Underlying asset Non-yield stablecoin Yield-generating sUSDe Target Retail investors Financial institutions Liquidity AMM or traditional CL Concentrated Liquidity + Yield-skimming Positioning General DEX Liquidity Hub on Converge
Frequently Asked Questions
How is Terminal Finance different from Uniswap?
Unlike Uniswap, Terminal focuses on yield-generating stablecoins and institutional assets while integrating yield-skimming to optimize capital.
Is sUSDe safe?
sUSDe maintains a 1:1 exchange rate with USDe and is developed by Ethena, a reputable project in the field of profitable stablecoins.
Who is the developer of Terminal Finance?
The project is built on the Converge blockchain by Ethena Labs and Securitize, two organizations with experience in digital finance.
Who does Terminal Finance serve?
The platform primarily targets financial institutions, investment funds, and institutional partners that need efficient, stable liquidity.
What benefits does yield-skimming provide?
This mechanism helps reduce Impermanent Loss, keep prices stable, and improve trading efficiency in liquidity pools.
Source: https://tintucbitcoin.com/terminal-finance-la-gi/
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