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What is TBILL Yield Token (TBILL)?
What is TBILL Yield Token (TBILL)?
Updated over a week ago

The TBILL Yield Token (TBILL) represents tokenized rights to the yield obtained through the asset deployment into Treasury Bills tokens — enabling you to benefit from the safety and reliability of U.S. treasury bills through the Finblox app. By leveraging the power of blockchain technology, the TBILL token offers you a convenient and secure way to earn U.S. Treasury yields on-chain of up to 5.0% APY.

Finblox is dedicated to providing users with access to the best available yield reward options. To ensure the strength and reliability of your funds, Finblox works with OpenEden, a carefully chosen institutional provider that offers U.S. treasury bills in a bankruptcy remote vehicle.

These funds are governed by a regulated fund management company, providing an extra layer of safety protection to the funds deployed via the Finblox app.

How can I start earning U.S. Treasury yields on the Finblox app?

Step 1: Top up your stablecoins

To get started, you need to have stablecoins in your Finblox wallet. Stablecoins are cryptocurrencies that are pegged to a stable asset, such as the US dollar. The available stablecoins for swapping are USDC, USDT, BUSD, and DAI.

Step 2: Swap stablecoins for TBILL tokens

Once your wallet is funded, navigate to the home screen and locate the TBILL token. Select "Buy with Swap" and choose your preferred asset to swap. The app will guide you through the process and provide real-time conversion rates and transaction details.

Are there any fees when trading TBILL tokens?

You may check the table below for the fees:

What is APY, and how is it calculated for TBILL tokens?

APY stands for Annual Percentage Yield. It represents the total amount of interest earned on an investment over one year, expressed as a percentage of the initial investment. In the case of TBILL tokens, the APY is up to 5.0%.

It is important to note that APY takes into account the effect of compounding, which means that interest is reinvested, and subsequent interest is earned on the original investment plus previously earned interest.

How are the yields on TBILL tokens compounded and paid out?

The yield on the TBILL token is compounded daily. This means that each day, the accrued interest is added to the principal amount, and future interest calculations are based on the updated balance. The interest earned is paid out daily—typically between 2AM to 5AM UTC—ensuring that users can enjoy the benefits on a regular basis.

What makes TBILL tokens safe compared to other digital options?

TBILL grants Finblox users tokenized rights to U.S. Treasury bills yield, which are considered safe for several reasons:

  1. They are issued by the government, which makes them a low-risk investment instrument. The government guarantees the payment of the principal amount and interest upon maturity.

  2. They have a high credit rating, indicating their low default risk. The government's ability to levy taxes and control the money supply makes it a reliable borrower.

  3. They typically have a short maturity period, usually ranging from a few days to one year. This shorter duration reduces the exposure to market fluctuations and uncertainties.

  4. They are highly liquid, meaning they can be easily bought and sold in the secondary market. This allows investors to access their funds quickly if needed.

📕 Please note that while TBILL tokens are considered safe as they are backed by U.S. treasury bills, it's always important to conduct thorough research and consider your own financial goals and risk tolerance before making any decisions.

What are the possible risks?

Since TBILL tokens are pegged to USD instead of USDC, one of the risk factors is on the utilization rate of the vault, which typically ranges from 95% to 97%. The remaining 3-5% serves as working capital, representing the underlying risk that users should take into account. This portion is susceptible to potential smart contract exploits or the depegging of USD Coin.

Other possible risks arising out of the TBILL tokens are:

  • Reward Rate Risk: Reward rates may fluctuate based on the prevailing economic forces, central banks and other complex influences.

  • Funding Liquidity Risk: There may be times that the liquidity available to holders may exceed demand however this is typically due to the time required to move fiat assets between entities.

  • Market Liquidity Risk: There may be times where the ability to buy or sell T-Bill securities becomes difficult and/or expensive and impacts yields.

  • US Sovereign Credit Risk: While the US government is generally considered a risk free entity, there is no guarantee the US government will not default on its future obligations.

  • Smart Contract Risk: The contract has been audited but future exploits may still be possible.

  • Counterparty Risk: The process of buying and selling T-Bills requires several partners who may at any time cease operations without notice.

📓 Please review our Risk Disclosure for other risks associated with dealing in digital assets generally.

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