Borrowing Against Tokenized Treasury Bills with Thala
Following the successful integration with TProtocol and the launch of the wTBT-MOD pool on ThalaSwap last week, we are thrilled to announce that Thala now offers 0% loans collateralized by wTBT, a digital token issued by TProtocol and backed by real world US treasury bills.
We’ve built the foundation with necessary pieces to bring actual value on chain: automation through smart contracts (allowing for 24/7 markets), instant liquidity via anAMM, and cross chain messaging for bridging assets. Measurable progress has been made over the past few years on tokenizing off chain assets to bring them on chain. This has led to the creation of protocols like TProtocol, Ondo, Backed Finance…etc. The final step was connecting the tokenization of off chain assets to the systems we use in DeFi to trade coins, borrow/lend, and otherwise interact with decentralized financial products.
This integration represents a monumental step forward in DeFi. For the first time ever, DeFi presents a clear advantage in leveraged products over existing solutions in traditional finance.
The data speaks for itself, pay 5.67%-6.33% to borrow against fixed incomes like treasuries in a traditional account and earn potentially negative yield, or use Thala at 0%.
wTBT offers an estimated base yield of approximately 4.7%. With the minimum collateral ratio (MCR) of wTBT set at 120%, users can effectively earn over 28% in organic, real-world yields — making this product offering an attractive option for those seeking high yields backed by real-world assets.
Collateral Risk Framework
The initial mint cap for wTBT is set at 50,000 MOD due to the experimental nature of the asset and potential counterparty risks. Thala’s collateral risk framework is designed to mitigate risks associated with collateralized assets. It requires deep liquidity, smart-contract robustness, low counterparty risk, and more. For more details, please refer to the protocol documentation in collateral risk framework.
Thala’s WTBT oracle is built using Switchboard as an oracle provider. Every 20 minutes, a switchboard oracle makes an HTTP request to https://app.thala.fi/api/wtbt-nav, fetching the latest wTBT NAV. This endpoint, implemented by the thala team, fetches wTBT contract data directly from an ETH fullnode. Specifically, the endpoint fetches the pricePerToken value directly from the tProtocol contracts. This value can be verified here: https://etherscan.io/address/0xd38e031f4529a07996aab977d2b79f0e00656c56#readProxyContract
ThalaSwap liquidity providers in the wTBT-MOD pool and wTBT token holders on Aptos are eligible for an airdrop from TProtocol. To be eligible for the airdrop, users must bridge their wTBT tokens to Aptos using Wormhole. For further information about the airdrop and wTBT’s integration with Aptos, refer to TProtocol’s Medium post:
Tokenized RWAs have the potential to serve as the foundational backbone of DeFi. We at Thala strongly believe that RWAs as collateral will enable Move Dollar to become a more robust, capital-efficient, and decentralized stablecoin. We’re excited to build the next frontier of RWAs on Aptos, and we can’t wait to share other partnerships in store.
Thala is a decentralized finance protocol powered by the Move language, enabling seamless borrowing of a decentralized, over-collateralized stablecoin in Move Dollar and capital-efficient liquidity provisioning via a rebalancing AMM on the Aptos blockchain.
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