New Choice of RWA National Debt Token: TProtocol V2 Pain Point Analysis

Current RWA government bond Token products on the market have their limitations. While MakerDAO offers high interest, it is complex to operate; Ondo's pure government bond product is difficult to popularize due to KYC requirements and insufficient liquidity. Against this backdrop, TProtocol V2 has emerged, aiming to provide ordinary users with a pure and easy-to-use government bond Token option.

TProtocol is essentially an innovative lending platform. Taking its supported Matrixdock pool as an example, this pool allows borrowing USDC using the national debt token STBT issued by Matrixdock as collateral. Users who deposit USDC will receive rUSDP, which is a yield-bearing token similar to AAVE's aUSDC.

A major highlight of the platform is the high LTV of STBT lending, reaching 100.5%. This means that ideally, the platform can pass on up to 99.5% of the national bond yield to rUSDP holders. To address the liquidity risks that such a high utilization rate may bring, TProtocol has adopted an over-the-counter trading model with borrowers, allowing Matrixdock some time to sell national bonds and repay debts. For small withdrawals, users can achieve this through regular withdrawals or by selling USDP on a decentralized exchange.

The core value of TProtocol lies in maximizing the transmission of the benefits of national debt tokens to USDC deposit users through the institutional collateral lending model, allowing ordinary users to also enjoy the benefits of national debt. This model differs from traditional institutional credit loans, as TProtocol focuses on products with dedicated funds. For example, the investment scope of STBT is clearly limited to short-term national debt and national debt reverse repurchase, and it regularly publishes asset reports while collaborating with Chainlink to provide reserve proof.

Nevertheless, the platform still relies to some extent on trust in the custodians of the underlying government bond assets. To this end, TProtocol has adopted a risk isolation strategy, launching independent funding pools for different RWA assets.

In other design aspects, TProtocol also demonstrates innovation. Its governance Token TPS/esTPS is designed similarly to GMX, where the longer the storage time, the higher the dividends. Additionally, the platform has designed a dual structure of iUSDP/USDP, similar to the architecture of sfrxETH/frxETH. iUSDP is the rUSDP version that automatically accumulates earnings, while USDP is used to provide liquidity in decentralized exchanges and other venues.

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

Currently, the competition in the RWA field is fierce, with MakerDAO holding a dominant position. However, as an over-collateralized stablecoin, the proportion of assets used by MakerDAO to purchase government bonds is limited. If there are too many users depositing DAI to earn interest, its interest rate may even fall below the government bond rate.

Overall, TProtocol passes the pure yield of government bond tokens to ordinary users who do not require KYC through an innovative model of institutional collateralized RWA asset lending. At the same time, drawing on the design concepts of sfrxETH/frxETH, TProtocol offers users the potential opportunity to exceed the basic government bond yields.