Phase 2 – Engine & Liquidity
Phase 1 proved that thUSD works. Phase 2 is about turning it into something people want to hold.
This phase is where Tharwa's infrastructure starts compounding: vaults get smarter, yield gets distributed, and liquidity moves beyond simple DEX pools. The Confluence Engine begins actively managing the portfolio, and the foundation is laid for scalable integrations across both DeFi and institutional rails.
This is the first phase where protocol logic starts to feel alive.
What Phase 2 Unlocks
The Confluence Engine Goes Live
Active optimization of RWA allocation begins using AI agents and CVaR-based strategies
The engine continuously adjusts vault exposure to protect against tail risk while seeking real yield
Real-time analytics and on-chain signals drive portfolio decisions, transforming this from a static vault system
This marks the transition from a passive treasury to an actively managed, risk-aware capital machine.
sthUSD Launch - Completed
sthUSD successfully deployed - ERC-4626 yield-bearing stablecoin now live on mainnet
Zero entry/exit fees implemented to encourage adoption
Instant withdrawals with optional cooldown system for enhanced security
Real yield distribution from RWA portfolio to sthUSD holders
Full audit completed by PrismSec with 0 critical findings
wthUSD & wsthUSD Development
wsthUSD (Wrapped Staked thUSD): Yield-bearing version of wthUSD
Enhanced yield potential from global market vaults
Institutional-focused strategies without compliance constraints
Planned for Q2 2025 launch
Risk-On Vault Expansion - Partially Completed
Tharwa Bonds successfully launched - Fixed-term vaults (90, 180, 360 days) with live yields
90-day bonds: ~3.94% APY
180-day bonds: ~5.91% APY
360-day bonds: ~8.00% APY
ERC-1155 NFT structure with tradeable maturity tokens
Additional vault strategies in development including longer-duration sukuk and specialized tranches
Vault segmentation maintained between faith-aligned and global market strategies
thUSD Liquidity Programs
LP incentives are introduced for select thUSD pairs on Ethereum and other target chains
DEX liquidity is deepened with protocol-owned support and strategic market maker engagement
OTC desk architecture is further developed to support high-volume mint/redeem flows with minimal slippage
This lays the groundwork for thUSD becoming a widely accepted unit of account, not just a mint-and-hold token.
sTRWA Staking Activation
TRWA stakers can lock their tokens to receive sTRWA
sTRWA will be used for governance voting, future yield share, and vault access rights
Alignment is rewarded: longer lock = stronger say
Strategic Goals of Phase 2
This is the moment where yield meets structure. The goal isn't just to offer returns but to offer sustainable, risk-adjusted returns that can survive outside of a bull market.
It's also the phase that pushes liquidity from isolated pools into a broader system of integrations and on-chain activity. With sthUSD and vaults functioning as intended, thUSD becomes more than a placeholder and transforms into an income-generating asset with purpose.
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