Use Cases for thUSD
thUSD is more than a placeholder for capital. It’s a stable, composable asset designed to move between vaults, yield strategies, treasuries, and on-chain integrations: all while maintaining real-world backing and predictable value.
Whether you’re holding, staking, trading, or building with it, thUSD is built to stay useful in any environment.
1. Passive Holding (Stable, Transparent)
thUSD provides users with a non-yielding, price-stable asset backed by a diversified portfolio of real-world value. It is not interest-bearing, and it does not expose holders to speculative risk or yield from prohibited sources.
All backing is managed by the protocol, not the user, making thUSD a neutral, transparent, and reliable asset that aligns with both conventional and faith-based finance principles.
2. Yield via sthUSD
Users can stake thUSD to receive sthUSD, a yield-bearing token that distributes passive income from the protocol's real-world asset performance.
sthUSD is best suited for users who want real-world yield exposure. For those seeking faith-aligned yield, Tharwa is building a separate vault system to isolate and certify compliant structures.
3. Fixed-Yield Bonds (Live)
Tharwa Bonds are now operational - users can deposit thUSD into fixed-term vaults that offer guaranteed returns in exchange for lockups. These bonds are structured as ERC-1155 NFTs with predefined yields and maturity dates.
Current Live Offerings:
90-day bonds: ~3.94% APY
180-day bonds: ~5.91% APY
360-day bonds: ~8.00% APY
Features:
Tradeable ERC-1155 NFT structure
Early exit options with time-decaying penalties
Secondary market liquidity via OpenSea/Rarible
Upcoming P2P marketplace for optimized trading
4. Specialized Vaults (Coming Soon)
Additional vault categories are in development to serve different institutional needs and compliance requirements:
Industry-Specific Vaults:
Robotics & Infrastructure: Exposure to UAE's growing tech sector
Energy & Commodities: Structured commodity exposure with risk caps
Real Estate: Direct property investment opportunities
Market-Segmented Vaults:
Global Market Vaults: Enhanced yield strategies with broader asset exposure
Faith-Aligned Vaults: Structures designed with Islamic finance principles (not yet certified)
Institutional Tranches: Large-scale allocations for DAOs and fund managers
5. OTC Trading and Arbitrage (Coming Soon)
Tharwa’s on-chain OTC Marketplace will allow users to:
Buy thUSD at a discount
Exit vault positions early by trading ERC-1155 vault tokens
Arbitrage price discrepancies and support peg stability
Conduct high-volume stablecoin trades without AMM slippage
This adds another layer of utility and strategic flexibility for thUSD holders.
5. Treasury and Institutional Deployment
thUSD is built for integration into DAO treasuries, protocol reserves, and institutional portfolios. Its real-world backing, peg protection, and composability make it ideal for:
Low-risk capital allocation
Diversification into real-world yield
Strategic holdings that support on-chain governance or reserves
6. Collateral in DeFi (Future Integration)
As thUSD adoption grows, it will be onboarded into lending markets, stable swap pools, and derivatives protocols. With LayerZero OFT compatibility and transparent backing, it’s positioned to become a native unit of account across EVM-compatible chains.
7. Real-World Payments and Rebalancing (Long-Term Vision)
In future integrations, thUSD could be used for:
Cross-border payments with on-chain auditability
DAO payroll and contributor payments
Rebalancing between real-world capital and DeFi portfolios
Fiat bridges with stable yield tracking
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