Real-Estate Bonds
Every position (issuer, ISIN, face value, coupon, maturity, LTV, status and share of the vault) is listed on the Bonds page and can be checked onchain through the BondPositionManager.
Bonds have to pass diligence and the allowlist timelock, and they can often only be bought on the issuer's subscription schedule. The reserve floor keeps part of the vault liquid, and the per-issuer cap limits concentration. Capital not in bonds still earns T-bill yield.
Every allocation goes through:
- Eligibility review: issuer structure, collateral, LTV, valuation, documents and token.
- Allowlisting: a public onchain proposal and timelock.
- Subscription & settlement: USDC paid against delivery of ERC-3643 tokens.
The issuer or paying agent pays USDC to the BondPositionManager. It is converted to USDest and deposited into the vault, which steps up the redemption share price. Coupons are never paid to depositors directly; they accrue into sUSDest.
The Holding Subsidiary, a Cayman subsidiary of the USD.estate Foundation. Its onchain holding address is the BondPositionManager.
The first cushion is the bond's own protection: senior security over real estate, LTV headroom, and ring-fencing in the issuer's structure. If an issuer misses a coupon or defaults, the position stops accruing and may be impaired. Enforcement then runs under the bond terms, and recoveries go to the vault. Losses beyond recoveries reduce sUSDest NAV. There is no insurance or token backstop. See Risks & Mitigants.
No. Bonds are held until maturity or until the issuer redeems them. Redemptions come from the reserve in epochs, and instant exit is available on secondary markets.