YZi Labs has strategically invested in TermMax, a fixed-rate lending protocol focused on developing on-chain bond market infrastructure. This move aims to address a perceived gap in the financial application layer for tokenized assets, particularly concerning credit, collateral management, and risk transfer products like options, according to YZi Labs.
TermMax, developed by Term Structure Labs, has already secured over $8 million in funding and has been operational on mainnet since April 2025. The protocol is deployed across 10 EVM-compatible chains, featuring 60 fixed-rate markets and 40 strategy vaults. It currently holds tens of millions of dollars in total value locked and serves over 1.5 million registered wallets. Key partners and Curators for TermMax include Keyrock, Hardcore Labs, Edge Capital, and Origami.
The $TMX token completed its Token Generation Event (TGE) on August 25th. TermMax’s offerings include TermMax Alpha, which provides physical delivery options designed to avoid liquidation before expiry, settling by physical delivery of collateral. This mechanism is intended to better suit less liquid assets than traditional perpetual futures. TermPrime, another component of TermMax, completed its first live trade on Canton Network at the end of June and has established a counterparty network of nine institutions.
YZi Labs highlighted that tokenized blue-chip equities, valued at $2.48 billion, represent the fastest-growing asset class on-chain. However, the firm noted that the financial application layer surrounding these assets remains underdeveloped, with a notable absence of options and other risk-transfer products. YZi Labs stated that its investment is strategically positioned to address this specific market gap.
Jerry Li, Co-founder and CEO of TermMax, emphasized the need for on-chain interest rate curves, stating, “When I left banking, there were a few hundred billion dollars of assets sitting on-chain without a single directly observable interest rate curve between them. In traditional markets, that would be unheard of. That is what made me decide to build this infrastructure on-chain.” Li also articulated TermMax’s vision: “What TermMax wants to be is not another lending protocol, but the on-chain interest rate curve itself,” aiming to enable DeFi to “grow into something professional enough to genuinely serve finance.”
YZi Labs, which manages over $10 billion in assets globally, invests in ventures across Web3, AI, and biotech, with a portfolio exceeding 300 projects. The firm has incubated over 65 companies through its EASY Residency program, and TermMax was selected for Season 3 of this initiative. TermMax previously saw Cumberland DRW lead its 2023 seed round and has integrated with Ondo Global Markets (January 2026) and Binance’s bStock, alongside its August 2026 deployment on Robinhood Chain. The protocol holds a DeFiSafety Process Quality Review score of 93%.
The specific terms of YZi Labs’ investment in TermMax were not disclosed.
Why This Matters
The materials describe a narrow update: YZi Labs invested in TermMax, a protocol focused on fixed-rate lending and on-chain bond market infrastructure. Terms of the investment from YZi Labs were not disclosed.
Broader Context
Source materials place the factual news in this context: TermMax is a fixed-rate, fixed-term borrowing and lending marketplace built by Term Structure Labs, live on mainnet since April 2025 and deployed across 10 EVM-compatible chains, where it runs 60 fixed-rate markets and 40 strategy vaults. The protocol splits debt into three tradable tokens: FT (principal), XT (interest and option value) and GT (an ERC-721 receipt for leveraged positions). Professional Curators set target APR ranges across isolated markets and manage strategy vaults, and liquidations settle by physical delivery of collateral. Co-founder and CEO Jerry Li has 25 years in global financial markets and served as Managing Director at Deutsche Bank, running fixed income and FX for Greater China.
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