The Request for Quote (RFQ) Protocol plays a central role in managing and streamlining the interactions between users and liquidity providers in the sUSD pool, particularly regarding how users mint and redeem sUSD (yield-bearing stablecoins) based on real-world assets like T-Bills.

1

User Places Order:

Specifies the USDC amount and commission.

2

Order Broadcasting:

The RFQ system broadcasts the order to all market makers.

3

Market Maker Selection

Market makers compete to fulfill orders based on the user’s offered commission.

4

Order Fulfillment

The selected market maker executes the trade and receives the commission.

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Cost Structure

  • User-Defined Commission: Users set their preferred commission rate (e.g., 1 basis point).
  • Incentive for Market Makers: The commission incentivizes market makers to participate and compete for orders.
  • Impact of Commission: Higher commissions can lead to faster order fulfillment but at a slightly higher cost to the user.
  • Transaction Fees: The transaction fee will be imposed during the redemption process (paid in USDC). This fee is computed on-chain and will be floated to the Investment Manager’s treasury address.

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