Term Finance

TERM is an ERC-20 governance token for the Term Protocol, a fixed-rate, fixed-term, collateralised lending system that matches borrowers and lenders through auctions that set a single market-clearing interest rate per auction. After an auction clears, lenders receive ERC-20 “Term Repo Tokens” representing a claim on repayment at maturity. Governance involves a DAO of TERM holders alongside a Term Foundation that operates and maintains the protocol. The DAO funds the Foundation and can veto defined on-chain actions initiated by the Foundation through separate governance contracts covering protocol actions and token or treasury-related actions. TERM is used for governance participation, staking and vote delegation and may be linked to USDC rewards distributed under the system’s rules.