We are excited to announce our latest partnership with Term Finance, introducing fixed APR loans with USD0++ collateral. This marks the second of the many upcoming DeFi integrations in Lending Protocols, and the continuation of our integration efforts to become a cornerstone of DeFi.

Auction Start and Duration

Term Finance uses blind auctions to kickstart their lending loan offers. The auction will last for 49 hours, during which lenders can place their bids, proposing their fixed APR for the loans they are willing to offer. This format ensures competitive rates and transparent lending terms.

Key Dates

• Auction Start: Tuesday 4.p.m UTC

• Auction End: Thursday 8th, 5.p.m UTC

• Loan Proposal Completion: November 7, 2024 (3 months)

• The auction: https://app.term.finance/auctions/0xa517d3c7bbdde2570c8aa5d2a725015caa2e9fc7/1

Once the auction ends, borrowers can freely borrow the lent USDC at the fixed APR. Depending on the success and borrowing amounts, future auctions may be held.

Lending Details

USDC lending for a fixed APR rate you can set during the Auction Phase and with a loan maturity of 3 months. Lending USDC will also net you 1 Pill per day and Bonus Pills for the duration of the loan on top of Term Points ( see more details in the Extra Incentive Paragraph)

• Earn 1 Pill/day + **Bonus Pills per USDC lent**

Borrowing Details

Borrow USDC with USD0++ collateral with a 86% LTV while still earning the Daily Pills from said collateral. Maximize your points by re-entering the protocol with your USDC or using your capital for other needs

• Earn 3 Pills/day per USD0++ collateral

As a reminder USD0++ ERC20 address is, ERC20 contract address is : 0x35D8949372D46B7a3D5A56006AE77B215fc69bC0 (Etherscan)

Liquidation and risks details

The USD0++ collateral price is fixed at 1 USD. This is because all USD0++ are backed by the same amount of USD0, which are in turn backed by USYC collateral.

For Borrowers: This means you don't face secondary market volatility risks. The only way to be liquidated is if interest rates push your LTV above 86%.

For Lenders: Usual DAO can unlock USD0++ to liquidate bad debt, ensuring lenders can recover their USDC value.

For the Usual Protocol: This setup is beneficial because, even if future revenues are sacrificed when USD0++ are unlocked, the protocol earns immediate revenues from the liquidation margin, boosting overall revenue.

It also mean that in case of liquidation Usual will seize 1 USD0++ to cover ~0.86 USDC.

Usual Pills

New to Usual and wondering what Pills are? No worries we got you covered, all your answers can be found here: https://docs.usual.money/pre-launch-rules/pills-campaign-rules

The Extra Incentive: Term Points

Additional rewards in the form of Term Points are available for all lenders and borrowers using our link.

During the auction: 0.5 point per $ * number of days to maturity for both lenders and borrowers if their position is filled.

During loan maturity: 1 point per $ each day the loan is outstanding for lenders.

Example: A lender participates in the auction and lends $10,000 worth of USDC. They will earn 0.5 * 10,000 * 90 = 450,000 points for auction participation, plus 10,000 extra points each day for as long as the loan remains outstanding if their position is filled.

Usual Final Boost on Term Finance

• You already have a Usual rewarded positions: You keep accruing your Final Boost for as long as you maintain at least one of these positions, and can freely enter/exit your Usual position on Term Finance.

• You only have a Usual position on Term: You will start accruing your Final Boost and will continue to do so for as long as you keep your new Position on Term Finance, or other new Usual rewarded positions.

• You are leaving your Usual Positions: If you leave your last Usual rewarded position, your Final Boost is at risk. You have a 1-week grace period to re-enter any Usual rewarded position to keep it. Remember, the Final Boost activates only at the end of the Pills campaign.

Boost Catchup on Term Finance

New to Usual and afraid you missed out on the maximum Final Boost? Usual offers a temporary Boost Catchup feature, allowing you to catch up on the Final Boost as if you had been accumulating it from the start of the protocol’s launch if you enter in the next 7 days starting from the beginning of the Auction.

How to use Term Finance

For more information on using Term Finance, check out the following resources:

Video walkthrough → https://youtu.be/8y6gTR_Hc5g

How it works → https://www.term.finance/how-it-works