Thala is Bringing RWAs to Aptos with TProtocol

Thala Labs
5 min readMay 2, 2023

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.

Website: http://thala.fi/

Discord: https://discord.gg/thala

Twitter: http://twitter.com/thalalabs

Documentation: https://docs.thala.fi

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Thala Labs

Thala is a decentralized finance protocol on the Aptos blockchain.