Problems
in DeFi
Unstable Returns
The returns and costs from existing money market protocols fluctuate based on supply and demand dynamics, which is unsuitable for long-term borrowers/lenders.
Inefficient Prices
As proven in TradFi, for fixed-income instruments, combining batch auctions in the primary markets and orderbook in the secondary markets is the most suitable way for price discovery.
Unhedgeable Risks
DeFi users have neither forward products and term futures to hedge exchange risks nor fixed-income markets to hedge interest rate risks.
Mission in 3 Stages
1. Establish a term structure of interest rates as a fundamental infrastructure.
2. Provide full hedging instruments to both DeFi users and TradFi institutions.
3. Enable people to earn future revenue streams in DeFi via tokenized real-world assets.
2. Provide full hedging instruments to both DeFi users and TradFi institutions.
3. Enable people to earn future revenue streams in DeFi via tokenized real-world assets.
Fixed Income
Protocol
Primary Market
Hourly batch auction to match bid/ask orders for fixed-income tokens
- Most tokens with sufficient liquidity will be the underlying tokens and can be used as the collateral
- 75% LTV (Loan to Value) and liquidation mechanism guarantee lenders' returns
- Available tenors on any given date would be the end of that month and that of the next month, and the very last day of the following four quarters
Secondary Market
Orderbook exchange for price discovery of fixed-income tokens
- Users can trade their fixed-income tokens for hedging and risk-taking
- Primary dealers will provide liquidity in secondary markets
- Primary dealers can enjoy fee waiver plus profit sharing after the obligation fulfilled
Repo Market
Orderbook exchange for collateralized loans with fixed-income tokens
- Users can collateralize their fixed-income tokens to borrow the underlying tokens
- A foreclosure auction protects borrowers' valuable fixed-income tokens from a fire sale
- Available repo tenors are 3-day, 7-day
zkTrue-up
zkTrue-up is a customized zk-rollup solution for auction and orderbook matching on DeFi. zkTrue-up ensures fairness and privacy for auctions by leveraging zero-knowledge proof and Sparse Merkle Tree technology. zkTrue-up also makes orderbook matching efficient and scalable. Overall, zkTrue-up guarantees data availability and security.
What Makes us
Different
Non-custodial
Thanks to zkTrue-up, a custom-built ZK-rollup based on zk-SNARKs, users always control their assets and can force withdraw their assets should our server go down.
Peer-to-peer
Compared to other fixed-income protocols, Term Structure adopts a peer-to-peer model rather than peer-to-pool, enabling users to use limit orders and have better quotes.
User-friendly
Interdependent primary, secondary, and repurchase bond markets allow users to take risks and hedge with flexibility. Transparent cost and zero slippage provide a better trading experience.
Roadmap