RWA Government Bond Token Market Analysis and TProtocol V2 Solution

Currently, there are some issues with RWA government bond Token products in the market. Although a certain mainstream lending platform offers high interest rates, its investment portfolio is quite complex. Another pure government bond platform faces problems such as cumbersome KYC, high thresholds, and insufficient liquidity. Therefore, the market urgently needs a pure asset and user-friendly government bond Token product. TProtocol V2 has emerged to address these pain points.

TProtocol is essentially a lending product. For example, on a well-known RWA platform it supports, users can use the government bond tokens issued by the platform as collateral to borrow USDC. USDC depositors can then receive interest-bearing tokens rUSDP, similar to the coupons from a well-known lending platform.

A major highlight of this product is the high leverage rate for government bond Token lending, reaching 100.5%. This means that in extreme cases, the utilization rate can be as high as 99.5%, thereby passing on the vast majority of government bond returns to rUSDP holders. To address potential large withdrawal situations, the platform has adopted an over-the-counter trading model with borrowers, allowing a certain amount of time to sell government bonds for repayment. Small withdrawals can be realized through regular withdrawals or by selling USDP on decentralized exchanges.

For compliance reasons, some treasury token products currently on the market are only open to qualified investors. Even products with relatively relaxed conditions require completing KYC and waiting for a long minting cycle. The innovation of TProtocol lies in maximizing the transmission of treasury token returns to ordinary USDC deposit users through institutional collateralized lending, allowing general users to also enjoy treasury yields.

Unlike the institutional credit loans that frequently had issues before, TProtocol focuses on products that are earmarked for specific purposes. For example, the investment terms of a certain government bond token clearly stipulate that the investment targets are short-term government bonds and reverse repos of government bonds, and it promises to regularly publish asset reports, while collaborating with a well-known oracle to provide reserve proof.

Nevertheless, this model still relies to some extent on trust in the underlying treasury asset custodians. Therefore, TProtocol plans to launch independent funding pools for different RWA assets to isolate risks. In the future, if collaborating with other platforms, new independent funding pools will be established to ensure risk isolation.

The design of TProtocol is also quite radical in other aspects. For example, the design of its governance Token is similar to that of a well-known derivatives trading platform, where the longer the deposit time, the higher the dividends. In addition, the platform has also designed a dual Token structure, similar to that of a well-known staking Token architecture, where one Token automatically accumulates returns, while the other is used to provide liquidity on decentralized exchanges.

This design allows TProtocol to enhance capital efficiency by incentivizing other protocols, and increase the yield of its Token, making it possible to surpass the yield of regular government bonds.

Currently, the competition in the RWA field is fierce. Although a leading lending platform has already secured an absolute advantage, as an over-collateralized stablecoin, its asset ratio used for purchasing government bonds is limited. If there are too many deposit users, its interest rates may even be lower than the government bond rates.

In general, TProtocol transmits the pure yield of government bond tokens to ordinary users without KYC through a model of institutional collateralized RWA asset lending. At the same time, drawing on the design concept of a well-known staking token, TProtocol is expected to achieve returns exceeding the base government bond yield.