By integrating Hypernative’s Pool Toxicity engine, Term Labs will offer lenders and borrowers real-time visibility into the quality and cleanliness of each lending pool.
Term Finance, a pioneering fixed-rate DeFi lending protocol on Ethereum, is integrating Hypernative's Liquidity Pool Toxicity monitoring solution to protect its lending markets from exposure to illicit funds and ensure compliance across its unique auction-based lending system.
Term Finance operates an auction-based lending protocol where each loan is its own isolated pool, and every auction has its own risk profile. The protocol's structure presents unique risk challenges: multiple auctions can occur for the same lending terms, loan receipt tokens trade on a secondary market, and the two-sided marketplace means both lender and borrower fund sources need evaluation.
When users commit capital or post collateral, they want confidence that the pools they’re interacting with are clean and compliant. Hypernative’s real-time provenance and toxicity monitoring gives users continuous visibility into the source of funds—screening liquidity before each auction, enforcing policy during execution, and alerting participants instantly if a pool’s risk profile changes. It delivers institutional-grade transparency and trust across the entire auction lifecycle.
Dion Chu, CEO & Founder @ Term Labs
Hypernative provides comprehensive liquidity pool monitoring from pre-transaction research through funds deployment to continuous post-deployment alerts. The Liquidity Pool Risk Engine enables protocols to identify and manage problematic liquidity pools through:
For Term Finance, this means the ability to screen liquidity providers within each lending pool, track collateral sources, and evaluate risk at every stage of their auction lifecycle, all with customizable thresholds that align with their institutional risk appetite.
DeFi’s next chapter will be defined by transparency and clean capital. Term Labs is setting that standard by using our Pool Toxicity technology to make lending safer and more compliant for everyone who participates. We’re proud to help them build an ecosystem where institutions can engage with confidence.
Gal Sagie, CEO & Co-founder @ Hypernative
The Hypernative platform uses battle-tested, sophisticated machine learning models, heuristics, simulations, and graph-based detections to identify threats with high accuracy and give customers precious minutes to respond before exploits can do damage. The system monitors security, technical, financial, governance and other risks. Hypernative Platform detected 99.5% of hacks last year with less than 0.001% false positive rate and saved $2B of funds to date.
Term Finance joins over 250 Web3 projects that rely on Hypernative’s real-time enterprise-grade platform that monitors over $100B worth of digital assets across more than 70 chains. The list includes Amber, Aptos, Balancer, Blockdaemon, Chainlink, Circle, Consensys, Ethena, eToro, Galaxy, Kraken, Linea, Morpho, Quantstamp, Reown, Solana, Starknet, and Uniswap.
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