A New Option in the RWA National Bond Token Market: Analysis of TProtocol V2

In the current cryptocurrency market, real-world assets (RWA), especially government bond tokens, are receiving significant attention. However, mainstream products often have certain limitations. A well-known protocol, although offering higher interest rates, has a more complex asset allocation; another pure government bond product faces issues such as high KYC thresholds and insufficient liquidity.

In this context, a government bond token product that can provide pure assets and is easy for ordinary users to access is particularly important. TProtocol V2 has emerged to address the pain points in the current RWA government bond token space.

TProtocol is essentially a lending platform. For example, taking a certain well-known RWA project it supports, the project can use its issued government bond Token as collateral to borrow USDC. Users who deposit USDC will receive rUSDP, which is a yield-bearing Token similar to a certain well-known lending platform's aUSDC.

One of the highlights of the platform is its extremely high loan-to-value ratio (LTV), reaching 100.5%. This means that ideally, up to 99.5% of the government bond yields can be passed on to rUSDP holders. To address the liquidity risks that such a high utilization rate may bring, the platform adopts a model of over-the-counter (OTC) transactions with borrowers, allowing a certain period to liquidate government bonds to repay the loan. Small withdrawals can be made through regular withdrawals or by selling USDP on decentralized exchanges.

The innovation of TProtocol lies in maximizing the transfer of the benefits of government bond tokens to USDC depositors through institutional collateralized lending, allowing ordinary users to enjoy the benefits of government bonds without facing cumbersome KYC procedures or high entry barriers.

It is worth noting that TProtocol focuses on products that are specifically designated for special purposes. Taking a certain national bond Token as an example, its investment targets are explicitly limited to short-term national bonds and national bond reverse repos, and it promises to regularly publish asset reports while collaborating with a well-known oracle to provide reserve proof. Nevertheless, users still need to maintain a certain level of trust in the custody institution of the underlying national bond assets. To mitigate risks, TProtocol plans to launch independent fund pools for different RWA assets.

In terms of governance, TProtocol adopts a token design similar to that of a well-known perpetual contract platform, where the longer the storage time, the higher the dividends. In addition, it has designed a dual-layer structure of iUSDP/USDP, similar to the architecture of a well-known staking token, where iUSDP automatically accumulates returns, while USDP is used to provide liquidity.

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

Currently, the competition in the RWA field is fierce. Although a well-known decentralized autonomous organization holds a dominant position, its use of this over-collateralized stablecoin for purchasing government bonds has a limited asset ratio. If there are too many users depositing this stablecoin to earn interest, the interest rate may even fall below the government bond rate.

Overall, TProtocol provides ordinary users with a way to obtain pure government bond Token returns without KYC through a model of institutional collateralized RWA asset lending. Its innovative design also creates the possibility for returns to exceed the basic government bond yield.