Question 1

What is Term Finance (TERM)?

Accepted Answer

Term Finance (TERM) is an ERC-20 token used for governance of the Term Protocol. Term Protocol is a fixed-rate, fixed-term, collateralised lending system where borrowers and lenders are matched through auctions that set a single market-clearing interest rate for each auction. After an auction clears, lenders receive ERC-20 “Term Repo Tokens” that represent a claim on repayment at maturity.

Governance is structured around a DAO made up of TERM token holders alongside a Term Foundation that operates and maintains the protocol. The DAO funds the Foundation and has veto rights over defined on-chain actions that the Foundation can initiate, enforced through separate governance contracts for protocol actions and token or treasury-related actions.

Question 2

What is Term Finance (TERM) used for?

Accepted Answer

- **Governance participation:** TERM is used to take part in the Term DAO’s governance process, including exercising veto rights over defined categories of on-chain actions initiated by the Term Foundation.
- **Staking and vote delegation:** TERM can be staked for governance participation and holders can delegate voting power to themselves or another address, depending on the governance setup.
- **Staking rewards:** Term describes rewards to stakers distributed in USDC by the Term Foundation, with distribution based on active staking and vote delegation rules set by the system.

Question 3

Who created Term Finance (TERM)?

Accepted Answer

Term Finance is developed by Term Labs. The co-founders are:

- Dion Chu (Chief Executive Officer)
- Billy Welch
- Dai Yu (Chief Financial Officer)
- Robert Chu (Chief Technology Officer)
- Andrew Zhou
- Michael Peng