💸Flexible Term USD Vault

Flexible term, variable rate on-chain loans fully secured by USD and USD-denominated cash equivalent collateral

Key Product Details

Loans

Loans can be made through the Flexible Term USD Vault at anytime and vault tokens are minted immediately. Loans begin accruing interest immediately.

Withdrawals

Withdrawal requests can be made any time and are due to be repaid after the completion of the Withdrawal Processing Time, which is 2 business days.

Eligible Loan Collateral

The portfolio of loan collateral is restricted to USD, USDC, US Treasury Bills, and Reverse Repurchase Agreements secured by US Treasury Bills. Its dual objective is to provide sufficient liquidity to adequately service outflows while also maintaining competitive yields.

Interest Rate & Accrual

Lenders earn a variable interest rate (“Loan Fee Rate”) which is benchmarked to the 4-Week Bank Discount Daily Treasury Rate less Fees. Principal and interest compounds daily.

Token Mechanics

Lenders are issued an ERC-20 Vault Token, XTBT, when they make a loan which can be exchanged in and out of USDC at an exchange rate that increases each day to reflect daily interest accrual. The exchange rate is updated daily at the Advance Cut-Off Time.

Legal

Leverages the same institutional grade legal framework, bankruptcy remote structure, and regulated service providers and counter-parties as our Fixed Term USD Vaults.