Earn Fixed Rates Instantly with Blue Sheets by Term Finance

Today, we’ll cover a newly unveiled fixed rate DeFi lending product by Term Finance, a protocol known for its fixed-rate lending via onchain auctions, with over $150M in borrow volume.

This new Blue Sheets earn product introduces instant, fixed-yield opportunities for DeFi investors, eliminating the need to navigate more complex onchain auctions pioneered by Term Labs. Traditionally, participating in Term’s weekly auctions meant lenders had to carefully bid at competitive rates to secure a spot at the market-clearing rate. This process required strategic timing, patience, and active management. But with Blue Sheets, that’s all changed—investors can access fixed-rate yields with a single click, anytime.

Through the Blue Sheets reselling market, users can now instantly buy into previously auctioned loan tranches with fixed rates, providing predictable returns on assets like USDC, USDT, DAI, and ETH. Each position is secured by onchain auctions, overcollateralized borrowers, and offers flexible durations, so lenders can lock in yields over one month or even twelve, without ongoing management until maturity. This instant access to pre-existing lending positions democratizes yield farming, offering DeFi users—whether experienced or new—a reliable way to secure fixed returns whenever they want.

For users looking to boost yields further, Blue Sheets offers Term Points as well as extra rewards through partnerships with major DeFi protocols such as ether.fi, Usual, and Ethena. With Blue Sheets, investors have a streamlined path to dependable, fixed-rate yields in DeFi, and can layer on additional rewards, making it a powerful solution for those looking to optimize their returns with minimal hassle.

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How To Earn Fixed Rates With Term Finance Blue Sheets

Let’s dive into how to get started with Blue Sheets by Term Finance!

Below you’ll find a written tutorial on how to approach lending at fixed rates with Blue Sheets by Term Finance but for those who prefer a video tutorial, check out the 10-minute screenshare above and feel free to share this link for free with your friends or remind them to subscribe for free to The Edge Newsletter!

Here’s a few risks to consider:

• Smart contract risk in Term Finance

• Front-end spoof attack on an app frontend

• An economic design exploit

• Limited liquidity to withdraw due to ongoing term loans prior to maturity

• Limited liquidity to lend given the newness of this product

• Colluding signers on any multisig

• Systemic risk across DeFi, including a stablecoin depeg

1. First, I go to the Blue Sheets app here under the Earn tab on Term Finance and connect my Ethereum Mainnet wallet.

2. Then, I begin to look through my options. While this product is new, there’s only USDC lending options currently on Ethereum Mainnet, but more networks anticipated to launch soon such as Arbitrum, Base, and Avalanche. I can rank my options to lend based on Fixed APY, Maturity, and Earn Limit. Earn Limit refers to how much USDC can still be lent before all auctioned loan tranches with fixed rates have been bought by lenders. It’s key to consider “how much USDC can I actually lend at these rates and for how long?”

3. Next, I click Earn next to the chosen Term Loan with the best setup for my portfolio. Below, I’ve opted to earn 7.25% APY through November 20, for 16 days as of this post, with the capacity to accept up to $100k of my USDC. The yield is backed by borrowing interest paid by term loan borrowers who have overcollateralized 125% of their USDC loan with WBTC.

4. Lastly, I specify how much USDC to lend for 16 days and follow the prompts to Approve USDC (2 transactions) and Deposit (1 transaction). In this example lending 10,000 USDC, I receive 10,033.93 Repo Tokens which I can redeem after the loan fully matures in 16 days on November 21 at 12 pm, for all of my original 10,000 USDC principal deposit + 33.93 USDC in interest earned. To redeem my Repo Tokens for my USDC + interest, I’ll return to the Portfolio tab here after maturity on November 21st.

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Disclosure: DeFi Dad and Nomatic are proud angel investors in Term Finance.