New Plan for RWA National Debt Token Market: Innovations and Challenges of TProtocol V2

Currently, there are some pain points in the RWA government bond Token market. Although MakerDAO has a higher interest rate, its investment strategy is relatively complex, involving not only the purchase of government bonds but also small loan businesses. Ondo, while focusing on government bond investments, has a high product threshold, requiring KYC certification, and lacks liquidity.

In response to these issues, TProtocol V2 has emerged. This product aims to provide ordinary users with a pure asset and easily accessible government bond Token solution.

TProtocol is essentially a lending product. Taking the Matrixdock pool it initially supports as an example, this pool allows the use of the government bond token STBT issued by Matrixdock as collateral to borrow USDC. Users who deposit USDC receive rUSDP, which is an interest-bearing token similar to the aUSDC from a well-known lending platform.

One of the highlights of TProtocol is its loan-to-value ratio (LTV) of up to 100.5%. Theoretically, in extreme cases, the capital utilization rate can reach 99.5%, meaning that almost all of the government bond yields can be distributed to rUSDP holders. In the face of such a high utilization rate, TProtocol adopts an over-the-counter trading model with borrowers to handle large withdrawals, allowing borrowers a certain amount of time to sell government bonds to repay loans. Small withdrawals can be completed through regular withdrawals or by selling USDP on decentralized exchanges.

Compared to other products that require strict KYC and lengthy minting cycles, TProtocol's innovation lies in maximizing the transmission of the yield from government bond tokens to USDC deposit users through an institutional collateral lending model, allowing ordinary users to also enjoy the benefits of government bond yields.

It is worth noting that TProtocol focuses on dedicated products. Taking STBT as an example, its investment targets are clearly limited to short-term government bonds and reverse repos of government bonds, and it promises to regularly publish asset reports while collaborating with a certain data oracle platform to provide reserve proof. Nevertheless, it still relies on trust in the custodians of the underlying government bond assets. To this end, TProtocol plans to launch independent pools for different RWA assets to isolate risks.

In terms of governance, TProtocol adopts a token design similar to that of a well-known trading platform's TPS/esTPS, where the longer the storage time, the higher the dividends. In addition, its dual-layer structure design of iUSDP/USDP is akin to the architecture of a well-known staking token, where iUSDP is the automatic accumulation version of rUSDP, while USDP is used to provide liquidity on platforms such as decentralized exchanges.

This model enables TProtocol to enhance capital efficiency and increase iUSDP returns by incentivizing other protocols, with the expectation that its returns will exceed those of general government bonds.

The competition in the RWA field is fierce, and a well-known stablecoin protocol has already taken the lead. However, as an over-collateralized stablecoin, its asset ratio used for purchasing government bonds is limited. If there are too many users holding this stablecoin to earn interest, the interest they receive may even be lower than the government bond rate.

Overall, TProtocol channels the pure yield of government bond tokens to ordinary users without KYC through an institutional collateralized RWA asset lending model. It draws on the design concepts of a well-known staking token, creating the possibility of yields that exceed the basic government bond returns. This innovative model introduces a new development direction for the RWA market, but its actual effects and risk control still require further testing by the market.