This “Perpetual Vault” eliminates the need for manual rolling of bonds. By depositing a bond token into the vault, investors receive an ERC-20 compliant receipt token (symbol rTBL for ‘Rolling T-Bill’) that can be redeemed at any time. Any bond tokens remaining in the vault at maturity are automatically rolled over to a new bond, without requiring any action from investors. This simplifies the process and ensures continuous investment.
In the above diagram, an Investor has some USDC as shown on the left hand side. The Investor purchases some bond TBL-1 as shown in the SETTLE step. The Investor then makes a DEPOSIT step and places their TBL-1 token into the Vault, receiving the receipt token rTBL. The Investor can hold rTBL as long as they please, without having to take any further investment action.
The Vault, meanwhile, is busy ensuring that as a bond comes to maturity, it buys more of a new bond. The diagram above shows the vault making ROLLOVER steps, so as TBL-1 reaches maturity, TBL-2 is bought using the proceeds of TBL-1. As TBL-2 reaches maturity, TBL-3 is bought using the proceeds of TBL-2. With each rollover step, more of each bond can be bought, using the profits from the previous bond. These profits are compounded, the full amount is reinvested with each rollover.
At some point, the Investor wants to take their profit and so they perform the REDEEM step shown in the diagram. In this step, the Investor gives back some or all of their rTBL tokens, and receives in exchange some of whatever bond happens to be live inside the vault at that time. In the example above they receive TBL-3.
The investor can now redeem their TBL-3 bond for USDC using the bond CLAIM step in the PV01 platform, as they would normally do for a bond.
All transfers of rTBL vault tokens are subject to the same regulator protection as the underlying bonds. For each attempted transfer of rTBL tokens, the transaction sender, receiver and initiator addresses are checked against PV01’s internal deny list as well as the Chainalysis sanctions list. This is done automatically by the vault smart contract.
PV01 administrators can temporarily freeze movements of rTBL vault tokens.
PV01 administrators can upgrade the smart contract code for a vault.