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.
wTBT Oracle
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
$TPS Airdrop
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.
Website: http://thala.fi/
Discord: https://discord.gg/thala
Twitter: http://twitter.com/thalalabs
Documentation: https://docs.thala.fi
Disclaimer
This article by Thala Labs and/or its affiliates (“we”, “us” and “our”) is for information purposes only. We do not provide tax, legal, insurance or investment advice, and nothing in this article should be construed as an offer to sell, a solicitation of an offer to buy, sell or issue or subscribe for, or a recommendation for any security, investment, cryptocurrency, token or other services, product or commodity by us or any third party. You alone are solely responsible for determining whether any purchase, sale, investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your personal objectives and personal and financial situation and for evaluating the merits and risks associated with the use of the information in this article before making any decisions based on such information or other content. You should consult a lawyer and/or tax professional regarding your specific legal and/or tax situation. Past performance is no guarantee of future results. Therefore, you should not assume that the future performance of any specific investment, cryptocurrency, token, commodity or strategy will be profitable or equal to corresponding past performance levels. Inherent in any such transaction is the potential for loss. No recommendation or advice is being given as to whether any transaction is suitable for a particular person. By accessing this article, you acknowledge and agree to all of the foregoing and that you bear responsibility for your own research, due diligence and transaction decisions. You also agree that we, our affiliates and our respective directors, officers, employees, consultants, shareholders, members, representatives, advisors and agents will not be liable for any decision made or action taken by you and others based on this article, news, information, opinion, or any other material published, discussed or disseminated by us.
This article contains forward-looking statements or forward-looking information (referred to collectively as “forward-looking statements”). Forward-looking statements can be identified by words such as: “anticipate”, “intend”, “plan”, “goal”, “seek”, “believe”, “predict”, “project”, “estimate”, “expect”, “strategy”, “future”, “likely”, “may”, “should”, ”would”, “will”, and similar terms and phrases and the negatives of such expressions, including references to assumptions. Examples of forward-looking statements in this article include, among others, statements we make regarding our future plans, expectations and objectives.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: reliance on blockchain technology and blockchain technology service providers; digital asset transactions being irrevocable and losses occurring from such transactions; our use and reliance on proprietary data and intellectual property in its business; potential misuses of digital assets and malicious actors in the digital asset industry; digital assets potentially being subject to hold periods; developments and changes in laws and regulations; and disruptions to our technology network including computer systems, software and cloud data, or other disruptions of our operating systems, structures or equipment. Readers are cautioned that the foregoing list is not exhaustive.
Any forward-looking statement made by us in this article is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
