TProtocol V2: Unveiling the Innovative TLending Mechanism for Permissioned RWA Tokens.
This past week, we launched our highly anticipated V2 testnet. This marks the start of a new era for TProtocol. The decentralized finance (DeFi) landscape is in a constant state of evolution, with groundbreaking protocols and mechanisms reshaping the way users interact with financial products and services. Among these transformative advancements is TProtocol Version 2, a trailblazing upgrade set to introduce a lending mechanism known as TLending. This mechanism brings a unique focus on permissioned Real World Asset (RWA) tokens, carving a niche for itself in the DeFi ecosystem while drawing inspiration from other major lending protocols.
TLending: Pioneering a New Era
TLending stands out as a lending protocol that offers support for permissioned RWA tokens, a departure from conventional lending mechanisms. This distinctive approach ensures that TLending users can tap into the potential of these specialized tokens, opening up avenues for enhanced financial opportunities.
In order to optimize risk management for specific real world assets, TLending will introduce a separated pool mechanism. Each pool will be dedicated to a specific RWA issuer and come with its own promissory note token. The inaugural RWA token on the TLending platform is sTBT, which is backed by reverse T-Bill repurchase agreements (repos) and boasts an Annual Percentage Rate (APR) of 5%.
The fundamental mechanics of TLending resemble those of prominent DeFi protocols like AAVE. TLending users can deposit their sTBT into the protocol, thereby unlocking the ability to borrow USDC against their collateral. Moreover, users have the option to deposit USDC into the platform, with the potential to earn an impressive interest rate of up to 5%. At the same time, when depositing USDC, a user will receive USTP, a promissory note token. This plays a crucial role in DeFi composability and allows the user to utilize their locked funds. This two-fold functionality — borrowing and lending — empowers users to make the most of their assets within the ecosystem.
A cornerstone of TLending’s design philosophy is the emphasis on stability. The platform exclusively incorporates collaterals that are underpinned by stabilized yield. This careful selection process ensures the resilience of the system and guards against undue volatility, creating an environment where users can confidently engage with their assets.
Innovation at the Core: Loan Recall Mechanism
In the realm of traditional lending protocols, a common issue arises — funds often lie dormant, underutilized and missing out on potential gains. However, we have a solution — our new innovative loan recall mechanism paired with the elevated Loan-to-Value (LTV) ratio for STBT.
The Innovation lies in the empowerment of users to seamlessly reclaim loans collateralized by STBT, offering a dual promise of liquidity assurance and elevated capital efficiency. Two distinct pathways for loan recall are presented:
- Rapid Liquidity: Matrixdock STBT metamorphoses into liquidity through sale within the STBT-3CRV pool. USDC from the sale will then be returned to the user’s account. This option primarily caters to smaller amounts due to a potential element of slippage.
- Matrixdock Liquidation: The alternative route engages Matrixdock to liquidate underlying assets, subsequently repaying USDC to users. A minor 0.1% fee accompanies this route. The process entails around three business days to complete, encompassing bank transfer and onramp.
The cost of borrowing will always remain lower than STBT APY, this will ensure USDC borrowers will maintain a positive net balance within the protocol. As a result, there will not be any liquidation triggered by net balance dropping below minimum threshold
TLending will also be implementing an APR ceiling once the capital utilization rate reaches 100%. This strategic move ensures optimal capital efficiency within the platform. Users can harness real yield effortlessly while navigating a secure environment that prioritizes their financial well-being.
With the introduction of the Loan Recall Mechanism, our journey toward optimal capital efficiency and liquidity optimization takes flight. Each feature converges to not only elevate the TProtocol experience but also to redefine lending paradigms.
In conclusion, TProtocol’s Version 2 TLending mechanism emerges as an innovative force within the DeFi space, focusing on permissioned RWA tokens. The introduction of sTBT, sets the stage for a secure and efficient lending ecosystem. Through its liquidation-proof design and dynamic interest rate adjustments, TLending provides users with a stable and reliable platform to maximize their capital potential. As the DeFi landscape continues to evolve, TLending stands as a beacon of innovation, transforming the way users interact with lending protocols and RWA tokens.
