Ribbon Finance
  • Introduction to Ribbon Finance
  • Aevo
  • FAQ
    • General
    • DOV Deposits
    • DOV Withdrawals
    • DOV Trading and options
    • Ribbonomics
  • Dune dashboards
  • Contribute
  • Security
  • Ribbon Theta Vaults
    • Introduction to Theta Vaults
      • Strike Selection and Expiry
      • Options Architecture
      • Options Settlement
      • Auctions
      • Risk profile
      • Fees
    • Theta vaults architecture
    • User guides
      • How to deposit
      • How to withdraw
      • How to pause and resume
      • How to stake, unstake vault shares and claim rewards
      • How to transfer vault positions
      • How to participate in Paradigm Auctions
      • How to redeem oTokens
  • RIBBON EARN
    • Introduction to Ribbon Earn
    • Ribbon Earn USDC
      • Risk-Free Rate
      • Twin win strategy
      • Vault specifications
      • Eligibility
      • Fees
    • Ribbon Earn stETH
      • What is a dolphin strategy?
      • Vault specifications
      • Risk profile
      • Fees
  • RIBBON LEND
    • Introduction to Ribbon Lend
      • Yields from unsecured lending
      • No lockups
        • Pool status
        • Default
      • Off-chain enforcement / credit underwriting
      • Built-in insurance
      • Fees
  • ribbon treasury
    • Introduction to Ribbon Treasury
      • Why Ribbon Treasury?
      • Partners
      • How to get involved
  • Ribbonomics
    • Overview and RBN tokenomics
      • Vote-Escrowed RBN
      • Fee Collection and Distribution
      • Liquidity Gauges and RBN Emissions
      • Gauge Weight Voting
      • Bribes
        • Guide to Boost Bribing
          • For Bribers
          • For veRBN Holders
      • Upgrades
    • How to lock RBN, boost and claim protocol revenues
  • Developers
    • Deployed Contracts
    • Ribbon Subgraph
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  1. RIBBON EARN
  2. Ribbon Earn USDC

Risk-Free Rate

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Last updated 2 years ago

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T-Bills, or short-term U.S. treasuries, are considered the risk-free rate and are secured by the full faith and credit of the United States government. Today, a 6 month T-Bill yields . This led to the proliferation of companies like (and others) who have tokenized U.S. treasuries on-chain.

The purchased Backed bIB01 tokens are 100% backed by the Blackrock-managed ETF, which is a portfolio composed of US Dollar denominated government bonds issued by the US Treasury, with remaining maturities between zero and one year.

Bankruptcy-remote

The issuer (Backed Assets GmbH) is a bankruptcy-remote, special purpose vehicle (“SPV”) with the sole business purpose of the issuance of financial instruments, such as the IB01 tracker certificate. Assets are ringfenced from the parent company’s (Backed Finance) balance sheet which limits financial risk and further protects the entity’s obligations towards the token holders.

Off-Chain Transparency

Backed Finance is integrating with Chainlink’s to enable seamless, decentralized, and autonomous proof of reserves attestations by verifying collateral amounts and posting that data on-chain. This ensures that the bIB01 tokens are indeed backed 1:1 by securities in the custodian bank.

Proof of Reserves
4.93%
Backed Finance