Treasury Contract

The Treasury contract is a simple vault that holds all the funds collected by the protocol. For example, if a user purchases a USDT bond, the USDT will be fully received by the treasury in exchange for an equivalent amount of RWA. New RWA tokens will be minted based on the risk-free assets (RFV) in the treasury. (Details of the RFV will be covered in the bond contract).

Total Treasury Assets:

This refers to the total value of all assets entering the treasury through bond sales, including USDT, RWA-USDT LP tokens, etc.

Total Risk-Free Treasury Assets:

This refers to the total value of risk-free assets entering the treasury through bond sales. For example, the value of USDT bonds equals the risk-free value of the USDT bonds. However, the total value of LP bonds is greater than the risk-free value of the LP bonds. Therefore, the total treasury assets may decrease if the price of RWA drops, but the total risk-free treasury assets will tend to increase.

The RWA Ecosystem sets that for each RWA minted, there is $1 of risk-free treasury assets backing it. As the risk-free treasury assets increase, more RWA tokens will be minted.