Original source: DODO Research

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As the macroeconomic environment changes, DeFi products are adapting and changing. In DeFi 1.0, sustainable stablecoin yields were a pillar, but now low-risk instruments have lower yields than traditional financial markets. As a result, traditional financial products have become more attractive due to their low-risk characteristics, leading to an interesting intersection between traditional finance and DeFi.

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Source: https://defillama.com/

Before that, many projects have tried to introduce real assets into DeFi. For example, JPMorgan Chase, DBS Bank and SBI Digital Asset Holdings have used the Aave protocol on Polygon to complete foreign exchange and government bond transactions on the Ethereum network. The bank swapped tokenized versions of Singapore government securities for Japanese government bonds and yen for Singapore dollars as a test.

Another example is that MakerDAO issued the world's first DeFi-based real-world asset loan. The Fix&Flip loan pool New Silver on Tinlake, a lending platform based on the Centrifuge protocol, served as the asset initiator and used MakerDAO as a credit tool to obtain the first loan. Not only that, but in 2022 MakerDAO will jointly launch a $220 million fund with BlockTower Credit to provide capital for real-world assets. In 2021, Aave partnered with the encryption company Centrifuge to launch a real-world asset market, RWA Market, which allows companies to allow users to invest in real-world asset-backed markets in all aspects of their business.

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Source: https://linen.app/interest-rates/

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Ondo Finance

In January 2023, Ondo Finance announced the launch of a tokenized fund, offering institutional investors the opportunity to invest in U.S. Treasury and agency-grade bonds.

It is understood that Ondo Finance is a large-scale, highly liquid ETF managed by institutions such as asset management giant BlackRock and Pacific Investment Management Corporation (PIMCO), and has launched three tokenized U.S. treasury bonds and bond products. Bond Fund (OUSG), Short-Term Investment Grade Bond Fund (OSTB) and High Yield Corporate Bond Fund (OHYG).

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Source: https://ondo.finance/ousg

In view of the failure of unregulated companies in the encryption field in 2022, Ondo Finance chose to cooperate with strictly regulated third-party service providers and hold assets in bankrupt far-qualified custody institutions. Among them, Clear Street, a prime brokerage platform for institutional investors, is the primary broker of the fund and will take custody of the fund's securities in its DTC (Depository Trust Company) account; Coinbase Custody will take custody of any stablecoins held by the fund. Coinbase Prime handles the conversion between stablecoins and fiat currencies; Richey May, an accounting and financial consulting company, will serve as the fund's tax consultant and auditor, and the company has been rated as the best company by Inside Public Accounting many times.

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Matrixdock

Matricdock is an on-chain treasury bond platform launched by Matrixport, a Singapore-based asset management platform. STBT is Matrixdock's first product, introducing a risk-free rate based on US Treasury bonds.

When issued, 1 STBT will be traded at 1 USDC. The bottom layer of STBT is 6-month U.S. treasury bonds and a reverse repurchase agreement collateralized by U.S. treasury bonds. STBT is an ERC-1400-compliant token issued on the Ethereum chain. The token is issued and redeemed by Matrixdock. Through the contract whitelist mechanism, the transfer and transaction are restricted only among Matrixdock authorized account holders. .

The mechanism of STBT is as follows:

1. Investors hand over USDC or USDT to the issuer, and the issuer mints the corresponding STBT through the smart contract;

2. The STBT issuer converts USDC into legal currency through Circle;

3. The legal currency is entrusted to a third party, and the third party escrow purchases short-term bonds due within six months through the U.S. bond trading account of traditional financial institutions, or invests in the overnight reverse repurchase market of the Federal Reserve;

4. Holders of STBT can move STBT back to their wallet address after minting, such as cold wallet or third-party hosting platform;

5. The smart contract of STBT will automatically distribute the yield of bonds or reverse repurchase to the currency holding address in the amount of STBT through the Rebase mechanism;

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Source: https://github.com/Matrixdock-STBT/STBT-contracts/blob/main/whitepaper/STBT White Paper.pdf

After the minting application is submitted, Matrixdock will mint and issue the corresponding amount of STBT according to the settlement cycle of T+3 and distribute the tokens within up to 4 Bank of New York days. Matrixdock will promptly redeem STBT Tokens after a redemption request has been submitted by debiting STBT Tokens from your account, stopping circulation or “burning” such STBT Tokens, and will (at the time of redemption) be redeemed with The principal of USD-linked digital assets equivalent to your STBT token (the ratio is equivalent to 1 USD per STBT token) is transferred to your account, less any related fees, which can reflect (the underlying asset is calculated proportionally when redeemed) (at the time of redemption) the transaction loss in value, and any transaction loss and/or transaction costs associated with the sale of the underlying asset that the Affiliated Entity deems necessary to effect the redemption.

It is worth noting that the STBT issuer is a special purpose vehicle (SPV, Special Purpose Vehicle) established by Matrixport. SPV pledges the U.S. debt and cash it holds to STBT holders, and STBT holders have the first priority to repay the entity asset pool. Even in the most extreme cases, such as Matrixport's bankruptcy, the value of STBT is still guaranteed by the asset pool, and the corresponding assets can still be redeemed after liquidating these securities.

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TProtocol

TProtocol is also a new on-chain treasury bond agreement, which itself is a fork of the stable currency agreement Liquity, and Matrixdock is used at the bottom. TProtocol introduces three tokens: TBT, sTBT and wTBT:

1. sTBT: Issued by Matrixdock, and there will be a rebase every weekday at 6 pm (Hong Kong time), the price is always $1. Only high-net-worth individuals or institutions that have passed KYC can purchase.

2. TBT: It is a rebase token that allows retail investors to mint and does not require permission, which corresponds exactly to sTBT. Users can mint with USDC, the price is always 1 USD (excluding fees). Users can redeem TBT for USDC, and the redemption price is always $1.

3. wTBT: It is an interest-bearing token, a packaged version of TBT, which can be exchanged for TBT. The purpose is to allow TProtocol to be integrated into existing DeFi protocols, since most DeFi protocols do not support Rebase tokens.

Additionally, the fee for minting TBT is 0.1%, and the fee for redeeming TBT is 0.3%. The APR of TBT can be calculated by formula. TProtocol values ​​asset transparency. The value of TBT and wTBT is backed by three types of assets: MC_sTBT, IDLE_FUND and PENDING_sTBT.

TBT can be traded on decentralized exchanges, and TProtocol will launch a liquidity pool on Curve Finance to ensure minimal slippage. TProtocol also allows users to stake TBT-3 CRV LP to obtain esTPS rewards to incentivize DeFi users to use the TProtocol protocol and TBT, thereby greatly improving the liquidity of TBT and ensuring low transaction costs when exchanging TBT.

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Source: https://app.tprotocol.io/

OpenEden 

OpenEden is an encryption start-up company established in early 2022, co-founded by Jeremy Ng, former head of Asia Pacific at Gemini, and Eugene Ng, head of business development.

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Source: https://openeden.com/#how-tbill-works

Ribbon Finance

Ribbon Finance announced on April 17 that it has cooperated with BackedFi, another RWA protocol, to launch Ribbon Earn USDC (V2), a principal-guaranteed option product based on treasury bonds, with a yield of about 2%, which is lower than other tokenized treasury bond products.

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Source: https://www.research.ribbon.finance/blog/ribbon-earn-v2-is-live

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At present, except for Tprotocol, which is really a license-free agreement for users to use, all other projects require KYC. And the vast majority of national debt tokens do not support the transfer function, so the usage scenarios are limited, such as the composability of DeFi, let alone the whole chain circulation. In addition, another core of treasury bonds on the chain lies in the qualifications of cooperative treasury bond acceptors, which have relatively large and opaque counterparty risks, smart contract risks, and oracle machine risks, as well as the widely criticized CeDefi centralization feature.

At present, the starting point of all RWA agreements is to allow investors to conveniently realize the conversion with real assets through stable currency, and the high liquidity and low risk of U.S. treasury bonds naturally become a relatively perfect choice. When the RWA treasury bond platform actually produces a widely used interest-bearing stable currency, the Defi Lego built from it is worth looking forward to. For example, the Layer 1 blockchain created based on the RWA platform, but the accompanying regulatory issues may also be unavoidable.

references:

https://www.binance.com/en-IN/feed/post/121124 

https://www.panewslab.com/zh/articledetails/rz 5 qwrud.html

https://ondo.finance/ousg

https://tprotocol.gitbook.io/tprotocol-documentation/white-paper/tprotocol-documentation

https://github.com/Matrixdock-STBT/STBT-contracts/blob/main/whitepaper/STBT White Paper.pdf

https://www.research.ribbon.finance/blog/ribbon-earn-v2-is-live

https://openeden.com/#how-tbill-works