TProtocol Mechanism
Introducing TBT and sTBT
TBT is short for T-Bill token. TBT is fully backed by permissioned sTBT issued by a multi-billion ceDeFi institution. sTBT has the following properties:
It is a rebasing token whose price is always $1. Users’ holding amount will grow continuously as the interest from the treasury accrues.
Its rebasing happens once a day at 6pm HKT for every workday.
It is not permissionless. Only KYCed high net worth individuals or institutions are able to purchase.
It is issued on ETH mainnet.
This ceDeFi institution handles the daily operations of T-Bill including trading, liquidity management and risk management.
The T-Bill business of this ceDeFi institution is operated under an independent SPV. So even if the ceDeFi institution faces a liquidity problem, the T-Bill business will remain intact.
Below are the basic properties of our TBT token:
It is a rebasing token.
It is permissionless.
Users can mint TBT with USDC. The minting price will always be $1, if fees are excluded.
Users can redeem TBT for USDC. The redemption price will always be $1, if fees are excluded.
Introducing wTBT
Introducing wTBT
wTBT is a non-rebasing token that can be converted to TBT or the other way around. Below are the basic properties of our wTBT token:
It is a non-rebasing token. So the amount will not increase, but its price will increase over time.
wTBT and TBT can be converted into each other without any fees. They are equivalent mathematically.
It is permissionless.
The purpose of wTBT is to enable TProtocol to be incorporated into existing DeFi protocols as most of the DeFi protocols do not support rebasing tokens.
Minting TBT
Accepted stables: USDC.
Fees: TProtocol will charge a one-time fee of 0.1%. For instance, if a user buys 100k worth of TBT, $100 will be charged as a minting fee. Part of the fee will be used to cover the interest rate cost when waiting for our partner to finish the trading and operation of the treasury. The rest of them will be sent to TProtocol DAO multi-sig as protocol fees.
Minting Price: The minting price of TBT will always be $1 if all fees are excluded.
Cash Flow: After users successfully mint the TBT, TProtocol will use the received USDC to purchase sTBT from our partner. This purchasing process will usually take 3 business days, so TProtocol will receive the corresponding sTBT after 3 days of receiving users’ funds. But TProtocol will issue TBT to our user immediately after user’s deposit funds and users will start to earn interest immediately after minting the TBT. This incurs interest rate cost. To make sure, our TBT is fully backed by enough assets. Part of the minting fee will be used to cover the interest rate cost of these 3-day waiting periods. Also, our partner only accepts transactions over $100K. Therefore, TProtocol will only buy sTBT once it has accumulated over $100k. This will slightly affect the APR of TBT.
Redeeming TBT
Fees: TProtocol will charge a one-time fee of 0.3%. For instance, if a user redeems 100k worth of TBT, $300 will be charged. 0.1% out of 0.3% will be used to pay our partner as they also request a redemption fee. The remaining 0.2% will be sent to TProtocol DAO multi-sig as protocol fees.
Redemption Price: The redemption price will always be $1.
Cash Flow: The redemption process generally takes 4 business days to finish as it requires the ceDeFi institution to retrieve liquidity from the treasury and onramp them into stables. Once the stables are ready, users will be able to claim their stables. Also it is recommended to get liquidity from the secondary market instead of redemption.
APR Calculation for TBT
The APR of TBT can be calculated as:
(MXP_APR - TP_MGMT_FEE) * ((1 - IDLE_FUND / (MC_TBT + MC_wTBT))
It is a non-rebasing token. So the amount will not increase, but its price will increase over time.
MXP_APR: The APR provided by our partner if investing in sTBT. Currently, the APR is 5%.
TP_MGMT_FEE: The management fee charged by TProtocol.
IDLE_FUND: The amount of funds which are waiting to be greater than $100k so that it can be used to purchase sTBT.
MC_TBT: The total market cap of TBT
MC_wTBT: The total market cap of wTBT
Below is an example:
sTBT is paying 5%, so MXP_APR is 5%. TProtocol charges 0.5% as management fee so TP_MGMT_FEE is 0.5%. There is $50k sitting in the contract waiting to be used to purchase sTBT, so IDLE_FUNDS is 50k. The total market cap of TBT and wTBT are 10M and 5M respectively. Using the above formula, the APR of TBT will be 4.485%.
Transparency
TProtocol puts great emphasis on transparency of assets, especially the assets which back TBT and wTBT.
The value of TBT and wTBT is supported by 3 types of assets:
MC_sTBT: sTBT stored in our multi-sig
IDLE_FUND: Idle funds in USDC waiting to be used to purchase sTBT
PENDING_sTBT: Funds which has been sent to our partner but not sTBT received
The main inequality that proves the backing of TBT and wTBT is as follow:
MC_TBT + MC_wTBT >= MC_sTBT + IDLE_FUND + PENDING_sTBT
Trading TBT
As a permissionless token, TBT can be traded at DEX. TProtocol will launch a liquidity pool on Curve Finance to ensure minimal slippage.
Liquidity Farming
To incentivize DeFi users to use TProtocol Protocol and TBT, TProtocol allows users to stake TBT-3CRV LP to get esTPS incentives. This significantly increases the liquidity of TBT and thus ensures a low transaction cost when swapping TBT.
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