TBYs

Overview

Term Bound Yield tokens or TBYs for short are receipt tokens minted to lenders within the BloomPool whose orders have been matched to a borrower and subsequently processed by market makers.

Mint Process

The minting process occurs once market makers fill a lender's matched order.

TBYs all share the same deployment address and are differentiated by token Ids. The token Id will correspond to the start time and end time of the TBYs yield generating window and will start at Id=0 and increment up with every unique maturity period.

Yield

TBY's rate is determined by the given rwaPriceFeed, which is a Chainlink Price Feed for the rwa asset, and the borrower's spread. To get the value of a TBY simply call BloomPool::getRate and pass in the token id. Once the TBY is fully mature all yield accrual stops.

The spread is only taken on the yield generated from the rwa. In the event that the rate is less than or equal to 1e18, no spread will be taken.

Maturity

All TBYs have a 180 day maturity from their start time to their end time.

Redemption Process

Once the maturity date has been reached and the market maker has completed their swap of bIb01 to USDC within the BloomPool, lenders are free to redeem their TBYs for their principal and yield by calling BloomPool::redeemLender and passing their token id and the amount of TBYs they are redeeming.