A New Option for RWA National Debt Token Market: Analyzing the Innovative Model of TProtocol

Currently, the RWA (Real World Assets) treasury token market has some pain points. A well-known protocol offers relatively high interest rates, but its business model is quite complex, involving not only treasury bond investments but also small loans and other services. Another pure treasury bond project focuses on treasury bond investments but faces issues such as cumbersome KYC (Know Your Customer) requirements, high entry thresholds, and insufficient liquidity.

In this context, the market urgently needs a government bond Token product with a simple asset structure that is easy for ordinary users to participate in. TProtocol V2 has emerged to address the pain points of the current RWA government bond Token market.

TProtocol is superficially a lending product. Taking its supported Matrixdock pool as an example, this pool allows the use of the national debt token STBT issued by Matrixdock as collateral to borrow USDC. Users who deposit USDC will receive rUSDP, which is an interest-bearing token similar to aUSDC on a certain lending platform.

A significant feature of TProtocol is the high loan-to-value ratio (LTV) of STBT lending, which reaches 100.5%. This means that in extreme cases, the utilization rate can be as high as 99.5%, thereby passing on a 99.5% yield on government bonds to rUSDP holders. In the face of such a high utilization rate, TProtocol adopts a model of over-the-counter transactions with borrowers to handle large withdrawals, allowing Matrixdock some time to sell government bonds to repay the loan. Smaller withdrawals can be achieved through regular withdrawals or by selling USDP on decentralized exchanges.

In contrast, certain government bond Token products are only open to qualified investors due to compliance reasons, and even products with relatively lenient conditions still require KYC and a longer issuance period. The innovation of TProtocol lies in maximizing the interest of government bond Tokens to USDC deposit users through an institutional collateral lending model, allowing ordinary users to also benefit from government bond yields.

It is worth noting that TProtocol focuses on products that are specifically designated for certain purposes. For example, the investment terms of STBT clearly specify that its investment targets are short-term government bonds and reverse repos of government bonds. To increase transparency, TProtocol will regularly publish asset reports and collaborate with a certain oracle platform to provide proof of reserves.

Nevertheless, the model of TProtocol still relies to some extent on trust in the underlying custody institutions of government bond assets. To this end, TProtocol has adopted a risk isolation strategy, launching independent funds for different RWA assets.

In terms of governance design, TProtocol adopts a model similar to that of a perpetual contract trading platform, where the longer the deposit time, the higher the dividends. In addition, TProtocol has designed a dual-layer structure of iUSDP/USDP, similar to the architecture of a certain staking Token, where iUSDP is the automatically accumulated version of rUSDP, and USDP is used to provide liquidity on decentralized exchanges.

This design allows TProtocol to improve capital efficiency and increase iUSDP returns by incentivizing other protocols, giving it the potential to surpass the yields of ordinary government bonds.

Currently, the competition in the RWA field is intense. Although a certain over-collateralized stablecoin protocol holds a dominant position, the proportion of assets available for purchasing treasury bonds is limited. As the number of deposit users increases, its interest rates may even fall below the treasury bond rates.

Overall, TProtocol innovatively channels the pure yield of government bond tokens to ordinary users without KYC through the institutional collateralization of RWA assets. Drawing on the design concept of certain staking tokens, TProtocol is expected to offer users returns that exceed the basic yields of government bonds.