🚰Flow of funds


Step-by-Step Description

  1. 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.

  2. 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.

  3. 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

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