Flow of funds
Last updated
Last updated
Users interact with real-world asset (RWA) protocols/issuers through standard know-your-customer (KYC) processes and receive T-bill tokens.
Example: Users mint tfBILL tokens from TrueFi.
Users deposit tokens to Trinity collateral vessels.
Users move their tokens (e.g. tfBILL) to the Trinity protocol, where they open a vessel -- a smart contract that locks up their tokens as collateral to mint TRI.
Users accrue interest on outstanding TRI debt. Note: Specific parameters for fees, interest rates, and loan-to-value ratios are set by governance. Check smart contract parameters to confirm current values.
After minting TRI, users deploy TRI to various strategies:
Earn fees via sTRI staking: To drive organic TRI demand, there are plans to launch a simple staking contract where users can lock TRI (sTRI) to earn a cut of protocol fees.
Leveraged T-Bill exposure: Users can swap TRI for USDC, use USDC to purchase more T-Bill tokens from issuers, and deposit T-Bill tokens again to mint more TRI.
By looping funds and compounding returns, users could potentially generate >15% APY in favorable market conditions.
Provide liquidity: Sophisticated users may supply liquidity to automated market maker pools (AMMs), depositing USDC and TRI to earn trading fees.
TRI/USDC liquidity enables other users to deploy leveraged T-Bill strategies where they trade TRI for USDC.
LPs on AMM pool(s) may be able to earn incentives from other protocols