🛳️Collateral and Vessels

What are Vessels?

Vessels are smart contracts where users deposit collateral in order to borrow (mint) TRI.

Each Vessel is linked to an address, and each address can have just one Vessel per collateral type. If you are familiar with Vaults or CDPs from other platforms, Vessels are a similar concept.

Vessels maintain two balances: collateral asset balance, and debt balance (denominated in TRI).

Users can change these balances by adding collateral and/or by repaying debt. As balances change, the Vessel's loan-to-value (LTV) ratio changes accordingly.

Accepted collateral assets

At launch, Trinity only accepts select short-duration onchain treasury bill products that enforce strong off-chain token holder protections. (see Supported Collateral)

In the future, Trinity Governance may approve additional collateral assets.

Redemptions & Liquidations

In case of unlikely events where TRI price depegs significantly or there is an issue with collateral Trinity supports two mechanisms: redemptions and liquidations.