Term Labs, the first scalable fixed-rate lending protocol, announced the mainnet launch of Strategy Vaults, offering individually curated vaults as well as aggregated Meta Vaults that further diversify users’ exposure to predictable, passive yields. Now live on Ethereum and Avalanche, Term’s Strategy Vaults provide new ways for retail DeFi users to access strategies previously available only to institutions and high-net-worth investors.
Following the unveiling of Blue Sheets in November, the Strategy Vaults announcement continues the series of developments from Term to democratize financial tools and create greater opportunities for average users.
A one-month Private Beta testing period attracted $1.4 million in deposits to Term’s Strategy Vaults. The mainnet launch debuts Term’s novel vaults for individuals and institutions, beginning with USDC deposits and initial institutional curators such as Shorewoods, Re7 Capital, August Digital and UltraYield.
“This launch represents another step in our mission to make institutional-grade fixed-rate lending accessible to everyone,” said Dion Chu, Founder and CEO of Term Labs. “Strategy Vaults empower users with automated solutions that deliver higher yields while ensuring transparency and security. We’re proud to offer the first product in DeFi that breaks down these barriers for more accessible financial products.”
Built on Yearn V3, Strategy Vaults addresses the complexity of fixed-rate lending by automating bond laddering, liquidity management, and loan rollovers. These automatic vaults easily integrate directly with Term Finance’s Auctions and Blue Sheets, optimizing returns while maintaining strict, smart contract-enforced risk controls. By eliminating inefficiencies that create an average 150 basis point gap between borrowing and lending rates, Strategy Vaults provide users with streamlined access to predictable, passive yields from overcollateralized loans.
Term has integrated 10 new collateral types with industry leaders, including Lombard Finance, Ether.fi, Ethena Labs, Pendle, Treehouse and Elixir. Collateral includes assets tied to Bitcoin, Ether, Solana and USD stablecoins.
The Strategy Vaults focus on automated yield optimization through dynamic fund reallocation across stablecoin yields, lending positions, and liquidity pools. The fund reallocation ensures that assets are continuously deployed for maximum returns within defined risk parameters. The risk parameters are enforced by smart contracts that control concentration limits, liquidity buffers, loan duration restrictions, and other strategies.
The non-custodial architecture of Strategy Vaults ensures that all processes remain transparent and verifiable on-chain, further enhancing security and trust. The Strategy Vaults also allow LP token holders to verify allocations on-chain and retain veto power over risk parameter adjustments.
Term plans to collaborate with more DeFi institutions to curate diverse risk profiles within the Strategy Vaults, aiming to broaden the user experience and increase access to fixed-rate lending opportunities.
Early users of Strategy Vaults and products like Blue Sheets can participate in the Term Points Program which is designed to reward loyalty from the community.
Term has cleared over $220 million in total volume through weekly auctions since launching publicly in August 2023. 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. Since launching, Blue Sheets has drawn more than $5.3 million in volume.
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.
Users can explore Term’s Strategy Vaults by visiting: https://app.term.finance/vaults.
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, Bloomberg, and Planet Labs.
Links: Website | X [Twitter] | Discord | Telegram