A New Choice in the RWA Treasury Token Market: Analysis of TProtocol V2

Currently, there are some issues with RWA government bond token products in the market. MakerDAO offers high interest rates, but the investment range is quite broad; Ondo focuses on government bonds, but has problems such as high KYC thresholds and insufficient liquidity. The market still lacks a pure asset government bond token product aimed at ordinary users. TProtocol V2 is designed specifically to address these pain points.

TProtocol is essentially a lending product. Taking the Matrixdock pool as an example, it allows the top three in the RWA track, Matrixdock, to use the issued government bond token STBT as collateral to borrow USDC. Users who deposit USDC receive rUSDP, which is a yield-bearing token similar to AAVE's aUSDC.

A major highlight of this product is that the LTV of STBT lending reaches up to 100.5%, theoretically achieving a maximum utilization rate of 99.5%, which means passing on 99.5% of the government bond yield to rUSDP holders. To address the possibility of large withdrawals, TProtocol adopts an OTC model with borrowers, allowing Matrixdock a certain time to sell government bonds to repay the loan. Small withdrawals can be completed through regular withdrawals or by selling USDP on the DEX.

Unlike products such as Ondo-OUSG and Matrixdoc-STBT that are only open to qualified investors, TProtocol maximizes the transmission of the national debt Token's returns to USDC deposit users through an institutional collateral lending model, allowing ordinary users to also benefit from national debt returns.

TProtocol focuses on products that are specifically allocated for designated purposes. Taking STBT as an example, its investment targets are clearly defined as short-term government bonds and reverse repos of government bonds, and it regularly publishes asset reports, also collaborating with Chainlink to provide proof of reserves. Nonetheless, users still need to maintain a certain level of trust in the custodians of the underlying government bond assets. To address this, TProtocol has launched independent Pools for different RWA assets to isolate risks.

In other design aspects, TProtocol adopts a governance Token TPS/esTPS model similar to GMX, where the longer the storage time, the higher the dividends. In addition, a dual-layer structure of iUSDP/USDP has been designed, similar to the sfrxETH/frxETH architecture. iUSDP is the yield auto-accumulation version of rUSDP, while USDP is used to provide liquidity on platforms like DEX.

This design allows TProtocol to enhance capital efficiency by bribing other protocols, increasing the yield of iUSDP, which has the potential to surpass ordinary government bond yields, similar to the yield enhancement model of sfrxETH.

Currently, the RWA sector is highly competitive, with MakerDAO holding a dominant position. However, as an over-collateralized stablecoin, MakerDAO has a limited proportion of assets used to purchase government bonds. If there are too many users depositing DAI to earn interest, the interest rate may fall below that of government bonds.

Overall, TProtocol transmits the pure yield of government bond tokens to ordinary users without KYC through the model of institutional collateralized RWA asset lending. At the same time, drawing on the design of sfrxETH/frxETH, it creates the possibility of yields that surpass the basic government bond returns.