A fixed dollar amount at a set date, with the loan's risk sold to an underwriter.
Who it serves. Savers and treasuries who want a fixed dollar amount at a known date.
How it is composed. A loan: a lender funds a loan secured by bitcoin and holds its claim. Cover: the lender buys cover from an underwriter — the underwriter's obligation to pay what the loan owes if the loan is breached, secured by a lien on the underwriter's collateral, priced by auction. A bill: loans maturing on a standard date are originated as a series, and their insured claims are issued as one token per date, which can be bought and sold through SpotAuction.
If the loan is repaid, the bill's holders are paid, the cover lapses, and the underwriter's collateral is released; it keeps the premium. If the loan is breached, the underwriter pays and receives the lender's claim, and with it the collateral.
What is different. No price feed and no valuation: the cover pays on the loan's breach, a fact on the record, and the claim passes to the underwriter.
Status: Designed. Depends on: the contingent obligation (a cover triggered by another obligation's state); a protection mechanism; the series and packaging mechanisms.
Caveats. The holder relies on the underwriter: if the loan is breached, the cover is only as good as the collateral the underwriter has locked under its lien, which may be less than full cover.
The premium is the price of the put the lender sells back to the underwriter; the holder gives up that part of the loan's interest.
The bill pays in a dollar stablecoin. What stands behind that token is a matter for its issuer, not the protocol.
It is not a bank deposit, and no deposit-insurance scheme stands behind it.
No amount is promised: it is set by the auctions that create the loan and the cover. Nothing described here is deployed; the v2 contracts are unaudited.
Nothing on this page is an offer to provide this instrument or a recommendation to use it. The v2 contracts are unaudited.
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