Term Protocol Operations

The Core Architecture - Term extends Yearn V3's foundation with Term-specific strategies to manage fixed-rate lending portfolios. This layer introduces custom integrations for repoTokens, auction participation, and liquidity management, while enforcing strict portfolio risk controls.

Key Focus Areas

  1. Liquidity Management: Automates portfolio adjustments using Yearn’s hooks to manage idle assets, repoTokens, and auction offers.

  2. Auction Participation and RepoToken Liquidity: Enables controlled auction offer submissions and public repoToken sales under strict validation.

  3. Portfolio Valuation: Accurately aggregates idle liquidity, repoToken holdings, and pending auction offers.

  4. Risk Controls: Enforces constraints on concentration, reserve ratios, maturity caps, and collateral quality.

The following four sections detail these Term-specific functionalities, ensuring efficient, risk-compliant portfolio operations.

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