Term Finance
Founded 2022 · 12 employees on LinkedIn · 5 known investors
Term Finance operates a decentralized protocol on Ethereum that runs weekly auctions matching crypto-backed borrowers and lenders to set a single market clearing rate for fixed-rate, fixed-term loans across terms up to one year. It serves DeFi participants seeking to lock in their cost of funding or a fixed rate of return.
Also known as Term · TERM Finance · Term Finance Protocol
Investors · 5
Funding
SEC filings, press & company announcements$5M disclosed across 2 rounds · 2023
Source: company announcements and press reports — follow each round's link for the claim.
Company profile
researched Aug 2026Term Finance operates a non-custodial fixed-rate liquidity protocol for digital assets on Ethereum. Its core primitive, Term Repos, is modeled on tri-party repo arrangements used in traditional finance: borrowers post crypto collateral and receive loan proceeds, while lenders receive ERC-20 Term Repo Tokens that act as receipts, burned at maturity to redeem principal plus interest. Protocol smart contracts service these transactions by ledgering repayments and monitoring collateral health and liquidations.
Pricing is set through Term Auctions, a recurring auction process in which borrowers submit sealed bids and lenders submit sealed offers. The protocol computes a single interest rate that clears the market; bids above and offers below the clearing rate are filled, all at the same clearing rate regardless of participant size, while unfilled bids and offers are "left on the table." Auctions are held weekly across a range of terms extending up to one year. The documentation also describes a Terminal 1 execution layer covering workflows for managing existing positions, and a periphery product called Blue Sheets (Simple-Earn), alongside developer documentation and published security audits.
Business model
The company distributes an on-chain lending protocol rather than a custodial service; documentation references protocol fees and penalties, though specific rates are not stated in the available sources.
Traction
The company site displays cumulative borrow volume cleared on the protocol and a schedule of recent and upcoming weekly auctions, but the specific figures are not present in the retrieved page text.
Latest developments
Documentation indicates an expanded product surface beyond the base protocol, including a Terminal 1 execution layer for managing existing positions and a Blue Sheets (Simple-Earn) periphery product; the docs page was last updated three months prior to retrieval.
▸Full profile — market position, technology, go-to-market, risks & controversies
Market position
Positions itself as a transparent, scalable, non-custodial fixed-rate alternative to variable-rate crypto lending, drawing an explicit analogy to tri-party repo markets in traditional finance.
Uses a recurring sealed-bid auction to determine one uniform clearing rate for all filled participants regardless of order size, rather than algorithmic or order-book pricing; lender positions are tokenized as transferable ERC-20 receipts.
Technology
Ethereum smart contracts implementing collateralized term repo loans, sealed-bid/sealed-offer auctions that compute a single market clearing rate, and ERC-20 Term Repo Tokens representing lender claims redeemable at maturity. Contracts also ledger repayments and monitor collateral health and liquidation conditions.
Go-to-market
Direct access through a web application and documentation portal, with updates distributed via a Telegram channel, a newsletter, and a blog covering fixed-rate lending and borrowing use cases.
Crypto borrowers and lenders seeking predictable funding costs or fixed returns on collateralized loans, including passive lenders and more active/advanced participants, per the product content referenced on the company site.
Risks & controversies
Documentation includes dedicated risk disclosure and "Risks & Failure Modes" sections, reflecting exposure to collateral volatility and liquidation risk inherent to collateralized on-chain lending. No controversies are described in the available sources.
Compiled by commissioned research from 6 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
In the news
▸Research sources · 6
primary sources listed
- Term Financeterm.finance · web
6 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Term Finance do?
- Non-custodial Ethereum protocol using recurring sealed-bid auctions to set clearing rates for fixed-rate, collateralized crypto loans.
- Who are Term Finance's investors?
- Term Finance's investors include Delta Blockchain, Electric Capital, Circle Ventures, Coinbase Ventures, MEXC Ventures.
- How much funding has Term Finance raised?
- Term Finance has disclosed $5M raised across 2 rounds.