Product Flowchart
Decentralized Short-term U.S. Treasury Bill Token Fund(dSTBT) is a closed-end fund with STBT(short-term treasury bill token) as the AAA class grade underlying asset. It is managed by Little Frog, a professional decentralized asset management DAO, which aims to maximize the adoption of crypto assets. Please check the below items to clear the whole working flow of dSTBT ETF.
The entire product process is divided into two parts: the decentralized part and the centralization part. In order to simplify the users’ work, we make the interaction only happen between the user and the fund is managed by a little frog. Users only need to deposit USDC during the whole process. When the operation period is over, users can redeem all USDC including principal and profit.
When the issuer Little Frog receives the USDC transferred from the user during the fundraising period, those USDC will be transferred to the custodian Matrixport after the fundraising is completed or the fundraising period expires. Matrixport will convert the USDC into USD and then trade it in the T-bill market. After the transaction is completed, the custodian will set up a STBT smart contract to mint the STBT token and send it to the issuer. So far, the entire issuance process of the closed-end fund dSTBT has been completed.
During the period of holding the bill, the custodian will receive the interest data from the T-bill market and update the results to the smart contract. and smart contracts will reflect the profit attributable to the user in time based on rebase tokens.
After the operation period, the user needs to initiate a redemption to accept the principal and return. After receiving the redemption request from the user, the issuer sends the STBT token to the custodian, and the custodian converts T-bill into USD, then converts USD into USDC within the Circle account and returns it to the issuer. Finally, the issuer repays the user with USDC to complete the entire redemption process.
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