Real Yields with Downside Protection

In DeFi, “yield” often means emissions, inflation, or protocol-owned buybacks. It’s not yield — it’s subsidy.

Tharwa takes a different approach: we generate real-world yield, from real-world assets, using structured strategies that prioritize capital preservation over raw APY.

The result is stablecoin yield that isn’t just high, it’s resilient.

What We Mean by “Real Yield”

Tharwa’s yield comes from the same assets that global institutional allocators rely on today:

• Sukuk (Islamic bonds with fixed, asset-backed returns)

• Real estate leasing in stable jurisdictions (e.g., UAE)

• Commodity exposure (e.g., oil yield structures)

• Gold vault strategies

• Tokenized infrastructure & real-world lending (selective)

All yield is generated off-chain and on-chain — and routed through smart contracts that handle vault logic, reporting, and distribution.

There are no native emissions or circular liquidity incentives required.

How Downside Protection Works

1. CVaR-Based Allocation

Every yield opportunity is evaluated not just for return, but for tail risk. If a 12% yield asset comes with a 20% worst-case drawdown: it gets deprioritized. Capital flows where the risk-adjusted return is strongest, not where the sticker APY is highest.

2. Built-In Liquidity Buffers

Vaults and the TharwaPool maintain on-hand liquidity to meet redemptions, even during market stress. This avoids fire-sale liquidations and maintains yield continuity.

3. Automated Rebalancing

When asset volatility increases or macro conditions shift, the Confluence Engine reallocates capital — automatically — into safer positions. The system doesn’t rely on governance votes or manual intervention to defend capital.

4. Segregated Vault Risk

High-yield vaults are separated from capital preservation strategies. Users opt into the level of risk they’re comfortable with. No hidden exposure, no blended dilution, and no contagion from one pool to another.

Passive Yield, Composability Included

Users who stake thUSD into sthUSD receive passive yield — derived from the system’s active vault strategies. This makes it easy to earn, without manually rotating capital or watching macro markets.

sthUSD is ERC-4626 compatible and can be used in DeFi integrations, automated strategies, or yield aggregators. For users seeking faith-aligned returns, a separate vault and staked asset may be introduced in future phases.