Analysis of TProtocol: RWA liquidity hub, to achieve high utilization rate of treasury bond yield

MakerDAO has a high interest rate but plays with flowers, in addition to buying treasury bonds, it also lends small loans Ondo pure treasury bonds but can’t buy them, KYC troubles have a high threshold and there is no liquidity At present, the market still lacks a treasury bond token with pure assets and can be provided to the majority of ordinary users, TProtocol V2 is a product born for this. This article will analyze the current pain points of RWA Treasury bonds and the problems that Tprotocol solves.

On the surface, Tprotocol is a lending product, such as the Matrixdock pool, which is supported by the first offering, and what it does is to allow Matrixdock, which is currently ranked among the top three in the TVL of the RWA track, to use its issued treasury bond token STBT as collateral to borrow USDC. USDC depositors will be given rUSDP, similar to AAVE’s aUSDC, which is an interest-bearing token.

The highlight is that the LTV of STBT lending is as high as 100.5%, so if the utilization rate can be as high as 99.5% in the extreme case, that is, 99.5% of the Treasury bond yield can be given to rUSDP. With such a high utilization rate, how to deal with the super-large withdrawal? It adopts the OTC model with the borrower, that is, to give Matrixdock a certain amount of time to sell treasury bonds to repay the money. For a small amount, you can generally withdraw money or sell USDP on DEX.

For compliance reasons, Ondo-OUSG/Matrixdoc-STBT tokens are only open to qualified investors, and Ondo’s recently slightly relaxed USDY still requires KYC and a two-month Mint cycle.

Unlike previous institutional credit loans, which have been prone to frequent crashes, Tprotocol focuses on dedicated products, such as STBT, which specifies that the investment object is short-term treasury bonds and treasury reverse repos, and regularly publishes asset reports and cooperates with Chainlink to prove that it has reserves.

Of course, although there is proof, the overall trust in the underlying treasury bond asset custodian is still more dependent, so Tprotocol will launch an independent pool for different RWA assets to isolate risks. For example, if we cooperate with Ondo one day in the future, then a new Ondo Pool will be built and USDC will be deposited to rUSDP-Ondo, a new token, to isolate risks.

Other aspects of Tprotocol are also designed to be more Degen, such as the design of the governance token TPS/esTPS similar to GMX, and the longer you store it, the higher the dividends. In addition, the iUSDP/USDP two-tier structure is also designed, iUSDP/USDP is similar to the architecture of sfrxETH/frxETH, iUSDP is the automatic accumulation version of rUSDP, and USDP has no yield to provide liquidity in DEXs and other places.

This model allows Tprotocol to improve capital efficiency and increase the yield of iUSDP through other protocols of Bribe, so that its yield can be higher than that of general treasury bonds, just like the sfrxETH yield enhancement model.

At present, the RWA track is fierce, and MakerDAO has occupied an absolute advantage, but as an over-collateralized stablecoin, the proportion of assets that MakerDAO can use to purchase treasury bonds is limited, and MakerDAO has been using USDC in the PSM module to withdraw and purchase treasury bonds, but this space is not particularly large, if there are too many users who deposit DAI to receive interest, its interest may even fall below the treasury bond interest rate.

Summary

Tprotocol transmits the pure yield of treasury bonds to general users who do not need KYC through the model of institutional collateralized RWA asset lending, and imitates the design model of sfrxETH/frxETH, so that its income has the opportunity to exceed the basic income of treasury bonds.