Thala is Bringing RWAs to Aptos with TProtocol
Thala’s primary goal for $MOD collateral is to onboard assets that are:
- Uncorrelated (to each other)
- Highly liquid (off or on chain)
- Yield bearing
Thala for now is Aptos-native, but given advancements in bridging infrastructure, we look across the entire DeFi ecosystem for new assets to add as collateral. Liquid staking derivatives, such as tAPT, are liquid and yield-bearing and are great additions; however, they are, by definition, correlated to the movements of the “major” coins.
US short-term treasury bills are effectively 0-risk high-yielding assets and are deeply liquid. This should make them prime collateral assets for borrowing recursively to lever up on the risk-free yield. However, borrowing against T-bills isn’t available to the majority of brokerage customers as traditional loan origination costs are expensive — typically most firms charge retail above the T-bill yield rate to borrow against them.
Loans in traditional finance have overhead, high variable costs, and are expensive to underwrite and manage. On-chain treasuries are freely tradable and naturally yield-bearing, allowing permissionless 24/7 access to the product. Smart contracts and blockchain technology facilitate this process at a competitive cost to existing solutions. Thala can enable users to deposit treasuries, borrow MOD against them, and purchase more treasuries.
Introducing TProtocol and $TBT
TProtocol is DeFi’s first permissionless T-bill protocol, bringing short-term U.S. Treasury securities yield into the DeFi ecosystem. Users can mint and redeem TBT at a 1:1 parity to USDC, excluding fees. TBT is a rebasing token, meaning that TBT quantity increases as yield is earned. wTBT is a yield-bearing, non-rebasing token that can be permissionlessly converted to its value in TBT. A more detailed breakdown of TProtocol is available on their protocol documentation https://tprotocol.gitbook.io/tprotocol-documentation/white-paper/tprotocol-documentation
The partnership will first focus on establishing ThalaSwap liquidity, then supporting wTBT over the next week as a collateral type for $MOD.
Pool details and Bridging
As wTBT is issued on Ethereum, users will need to bridge the token to Aptos through Wormhole’s bridge at https://www.portalbridge.com/. Please note that currently, only wTBT bridged from Ethereum will be supported on Thala for MOD collateral and incentivized LPs.
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.
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.