The compressive effect of L2 fee reduction on the fixed-rate curve.

Today, I saw @TermMaxFi's daily active wallet reach a new high of 3028, with U vault APY over 20% plus 120x XP stacking.

Many people only look at returns, but I’m thinking that if the roadmap proceeds as planned, Ethereum, Arbitrum, multi-chain expansion, App V2 adding Order Aggregator, and then cross-chain liquidity, the fixed-rate curve will need to be redrawn.

In the past, when gas fees were high, many claimed to be working on fixed-rate products, but small funds hardly moved. Placing orders, adjusting ranges, rolling positions—after fees, there’s hardly anything left. It’s not that they don’t want to, but it’s not cost-effective.

L2 reduces gas costs, and at most, it changes the threshold. Previously, a few hundred dollars felt like paying for fees; now, small funds are entering, orders become more frequent, and the curve is touched and priced by more people.

I’ve looked at several curves. The short end was flattened first, with new money testing short-term positions. As orders increase, the spread gets squeezed. The mid-term is lively, with curators adjusting quotes more frequently. Ordinary users think interest rates are constantly moving, but actually, more players are involved. The long end is slow; it doesn’t consume gas and relies on asset quality and trust. Only when these are stable will it grow long.

The key step is the Order Aggregator. In Q1 2026, with App V2 launching, users won’t need to pick pools themselves; the system automatically finds the optimal one. At this point, competition shifts to who offers a more stable curve.

All interest rates are laid out on one table—who provides a credible curve wins. Once it’s stable, it could become an on-chain reference.

Low gas also has side effects. With more small orders, curve fluctuations become more noticeable. The lower the threshold, the more people treat it as a high-yield product, especially in a bull market.

Recently, I’ve been rolling small positions on L2. Gas no longer blocks transactions, and operations are much simpler. When fees aren’t a barrier, the market starts to see who’s pricing seriously.

That’s all for now. In the next article, I’ll discuss whether the Order Aggregator will smooth out individual pool characteristics, and how cross-chain integration might turn the @TermMaxFi curve into an on-chain coordinate system.

By then, DeFi fixed income will be different. Do you prefer larger interest spreads with more opportunities, or a more stable capital market structure?