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Term Finance Lend Review 2026: Fixed-Rate Auction Loans

Term Finance is a DeFi protocol that sets fixed-rate, fixed-term crypto loans through weekly on-chain auctions. It suits users who want predictable rates, but its TVL is small and funds are locked until maturity.

By the DappsAtlas editorial team · Updated Nov 5, 2026

DappsAtlas score

6.8/10

Good

Visit TermFinance Lend

Our verdict on TermFinance Lend

6.8/10

Term Finance suits DeFi users who want a known rate and maturity for crypto-backed loans instead of a floating rate. The auction model gives every participant the same clearing rate, and audits are listed. The main caveats are the small TVL of about $3.4 million, the weekly auction schedule and funds being tied up until the term ends. Fee details should be confirmed in the app and docs before committing capital.

Score breakdown

How TermFinance Lend scores

Security: 7.2/10
Ease of use: 6.5/10
Fees: n/a
Features: 6.5/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is TermFinance Lend?

Term Finance is a fixed-rate borrowing and lending protocol that originates crypto-backed loans through on-chain auctions. It has been listed on DeFiLlama since August 2023 and describes its aim as originating fixed-rate, fixed-term loans at scale.

DeFiLlama shows about $3.4 million in total value locked across Ethereum, Arbitrum, Plasma, Avalanche and Base, with a 7-day change of -3.7%. That makes it a small protocol compared with the largest lending platforms, and no protocol token is listed.

The homepage names backers including Daemon Ventures and a range of angel investors from other crypto projects. It also cites a DeFi Safety score of 93% and says its contracts were audited.

How TermFinance Lend works

Most DeFi lenders use pooled markets where the interest rate floats with supply and demand. Term Finance instead uses auctions. Lenders and borrowers submit what rate they will accept for a given term, and the auction finds a single clearing rate.

Everyone in that auction gets the same rate. Borrowers post crypto collateral and receive a loan that matures at the end of the term, while lenders earn a fixed return if the loan is repaid. The homepage says auctions are weekly and cover terms up to a year.

The result is a predictable cost for borrowers and a predictable yield for lenders. The trade-off is that your position is tied to the term and you can only enter at auction times.

7 features

Key features

Auction-based rate discovery

Borrowers and lenders are matched in an on-chain auction that produces one market clearing rate for each term.

Fixed-rate, fixed-term loans

Loans carry a fixed rate and fixed maturity, so borrowers know their cost of funding and lenders know their return.

Weekly auctions, varied terms

Auctions run weekly with terms up to a year out, letting users choose a duration that fits their cash flow.

Single clearing rate

All participants in an auction receive or pay the same clearing rate, regardless of size.

Crypto-backed loans

Loans are backed by crypto collateral rather than credit checks.

Multi-chain presence

DeFiLlama lists deployments on Ethereum, Arbitrum, Plasma, Avalanche and Base.

Referrals and learning resources

The site highlights a referrals programme, plus documentation, a blog and a newsletter for newcomers.

Pros and cons

What we like

Fixed rates and fixed terms make costs and returns predictable.
Auctions set one clearing rate for all participants, large or small.
Weekly auctions with terms up to a year give flexible durations.
Audits are listed, and the project cites a DeFi Safety score of 93%.
Available on five networks per DeFiLlama, including Ethereum, Base and Arbitrum.
The homepage claims no spread and no slippage.

Watch out for

TVL of about $3.4 million is small next to the major lending protocols, so liquidity per term may be thin.
Fixed terms mean funds are locked until maturity, so lenders and borrowers cannot exit early at par.
Auctions run on a weekly schedule, so you cannot borrow or lend instantly at any time.
No governance or protocol token is listed, and the team's legal and regulatory status is not published on the homepage.
Smart-contract risk applies, and the audit count is only two as listed.
The 7-day TVL change of -3.7% shows usage can shift quickly.

TermFinance Lend fees

The homepage describes the model as having no spread, no slippage and low fees, but the page does not publish a specific fee schedule. Users should check the app and the documentation for the current protocol fees before bidding.

As with any on-chain protocol, you also pay network gas on each transaction. Gas varies by chain, with Ethereum mainnet generally costing more than layer-2 networks.

Is TermFinance Lend safe?

The project says its smart contracts were audited by industry-leading security firms and points to a DeFi Safety score of 93%. DeFiLlama lists two audits. Audits reduce risk but do not remove it, and the specific auditors and reports should be read in the audit section of the project's documentation.

The protocol is non-custodial in the sense that loans run through smart contracts, so you carry smart-contract risk, collateral liquidation risk for borrowers and counterparty default risk tied to collateral value. The project does not publish licence or regulatory details on its homepage. Small TVL can also mean thinner liquidity at some terms.

6 steps

How to get started with TermFinance Lend

1
Check that DeFi lending is permitted where you live, then set up a self-custody wallet.
2
Fund the wallet with the asset you want to lend or the collateral you plan to post, plus gas for the chosen chain.
3
Open the app from the official site and read the documentation on auctions, terms and collateral rules.
4
Look at the upcoming auction schedule and pick a term that matches your needs.
5
Submit a bid to lend or an offer to borrow before the auction closes.
6
After clearing, monitor the loan and, if borrowing, keep collateral healthy until maturity.

Open TermFinance Lend

Who TermFinance Lend is for

Term Finance is for DeFi users who value predictability, such as borrowers planning cash flow or lenders who want a locked yield. It is less suited to people who need instant liquidity or want to move in and out of positions at any time.

TermFinance Lend FAQs

What is Term Finance?

Term Finance is a fixed-rate borrowing and lending protocol. Instead of a floating rate that changes with pool utilisation, borrowers and lenders are matched in auctions that produce one clearing rate for a chosen term.

How do Term Finance auctions work?

Auctions are held weekly on Ethereum across a range of terms up to a year. Participants submit bids or offers, and the auction sets a single market clearing rate that everyone pays or receives, whether large or small.

Which chains does Term Finance support?

DeFiLlama lists Ethereum, Arbitrum, Plasma, Avalanche and Base. The homepage describes the auctions as held on Ethereum.

Does Term Finance have a token?

DeFiLlama shows no token for the protocol. The homepage does not mention a governance token, though it does promote a referrals programme.

Is Term Finance audited?

The project says its contracts were audited by industry-leading security firms and cites a DeFi Safety score of 93%. Two audits are listed on DeFiLlama. No audit is a guarantee against loss, so only commit what you can afford to lose.

What are the fees?

The homepage says the model has no spread, no slippage and low fees, but it does not publish a fee schedule on the page. Check the app and documentation for current figures, and remember you also pay network gas.

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