Overview

USD.estate allocates capital to permissioned real-estate bonds that meet published eligibility criteria. It is a new onchain distribution channel for institutionally structured real-estate credit.

USD.estate does not lend and does not originate. The sUSDest vault subscribes to bonds issued by regulated vehicles, using the same documents and on the same terms as any other investor. Every position passes eligibility review, a public allowlist timelock and onchain guardrail checks before any capital moves. Funds settle only against delivery of the bond tokens.

Bond Allocation Lifecycle

From eligibility review to maturity, every allocation moves through four phases.

Phase 1: Eligibility Review

The issuer or arranger submits the bond and its documents. The Operating Company runs diligence against the published Bond Eligibility Criteria. This covers:

• the issuer's legal structure and ring-fencing
• the governing documents
• the security package and real-estate collateral
• valuation source and loan-to-value
• coupon, tenor and currency
• paying-agent arrangements
• the bond token's ERC-3643 implementation and identity registry

KYB is completed on the issuer, and the Holding Subsidiary completes the issuer's investor onboarding.

Phase 2: Allowlisting

If the bond passes review, the Foundation multisig — which holds the timelock proposer role — queues the addition to the bond allowlist through the timelock controller. The proposal is public onchain and records the bond token address, issuer identifier and issuer group used for the per-issuer cap. Nothing can be allocated to the bond until the timelock delay expires. During that window depositors can review the addition and, if they disagree, request redemption or sell sUSDest.

In parallel, the issuer's token agent registers the BondPositionManager's ONCHAINID identity in the bond's identity registry, which lets it receive the tokens.

Phase 3: Subscription & Settlement

The strategy multisig commits USDest to a specific subscription through BondPositionManager.depositSubscriptionTimelock(). The commitment is identified by a hash of the agreed subscription terms: bond, units, price, settlement date and expiry.

The call reverts if any of the following fails:

• The bond is not on the allowlist.
• The issuer's exposure after settlement would exceed the per-issuer cap.
• The vault's liquid reserve after settlement would fall below the reserve floor.

At settlement, USDest is redeemed for USDC and paid to the issuer's subscription account. At the same moment, the ERC-3643 bond tokens are delivered to the BondPositionManager (delivery-versus-payment). If terms change or the commitment expires, it is cancelled and the USDest goes back to the vault.

Allocatable to bonds = Vault NAV − Reserve floor × Vault NAV − Pending redemptions
Issuer exposure after settlement ≤ Per-issuer cap × Vault NAV

Phase 4: Holding, Coupons & Maturity

The position is held to maturity. Coupons are paid in USDC to the BondPositionManager, converted to USDest and deposited into the vault. From settlement onward, the position accrues coupon into the deposit share price. Coupons reach the redemption share price only once the cash is received. At maturity, or when the issuer redeems early under the bond terms, principal returns to the vault as USDest. It is never sold early to fund redemptions.

Bond Eligibility & Yield

The protocol does not set coupon rates. Issuers price their own bonds, and the protocol decides only whether a bond is eligible and how much to allocate. Eligibility is framed by instrument category:

Detailed thresholds (maximum LTV 70%, valuation age, tenor, jurisdictions, coupon currency) are set in Governance & Parameters.

Illustrative Vault Composition

Every slice below respects the launch guardrails: the reserve stays at or above the 20% floor, and no single issuer exceeds the 20% per-issuer cap.

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pie showData
    title Illustrative sUSDest composition (not actual)
    "USDest reserve · USDC + T-bills" : 30
    "Issuer A bonds" : 20
    "Issuer B bonds" : 18
    "Issuer C bonds" : 17
    "Issuer D bonds" : 15

Key Parties

Legal & Token Structure

Every position involves:

• Bond terms: final terms, prospectus or compartment documentation, which set out coupon, maturity, ranking, security, events of default and enforcement
• Subscription agreement: between the Holding Subsidiary and the issuer, or its arranger or distributor
• Investor onboarding: KYB of the Holding Subsidiary by the issuer, and ONCHAINID claims issued for the BondPositionManager identity
• Security documents held by the issuer, trustee or security agent: mortgages, pledges or equivalent security over property or property-owning vehicles
• Services Agreement: between the Foundation and the Operating Company
• Institutional Mint & Redemption Agreement: between the Foundation and each approved USDest counterparty

Issuer-Level vs Vault-Level Reserves

The protocol has no borrower reserve account. Two distinct buffers exist, and they should not be confused:

• Issuer-level reserves: some bonds have their own interest reserves or cash sweeps under their terms. These protect coupon payment.
• Vault-level reserve floor: the minimum share of sUSDest NAV held liquid. This protects redemptions, not coupons.

In the Event of a Missed Coupon or Issuer Default

If a coupon is not received by its due date plus any grace period in the bond terms, the Holding Subsidiary records a credit event onchain for that position:

1. The position stops accruing coupon in the deposit share price.
2. No new allocation can be made to that issuer.
3. If the published impairment trigger is met, the position is written down to its impairment value, which reduces both share prices.

Enforcement happens offchain under the bond terms, usually through the trustee, security agent or noteholder representative, and can include sale of the underlying property. The Holding Subsidiary exercises the protocol's noteholder rights. Recoveries go to the vault in USDC, and the position is closed out onchain. See Onchain / Offchain Structure.

In the Event of Issuer or Sponsor Insolvency

Eligible issuers are bankruptcy-remote vehicles or segregated compartments. If the sponsor or originator of a bond becomes insolvent, the assets securing the bond are ring-fenced from its other creditors under the vehicle's structure and the applicable securitisation or bond law. Noteholder claims stay against the issuing vehicle and its security package.

Getting Started

Allocation from sUSDest is not self-serve. Issuers and arrangers who want to be considered:

1. Review the Bond Eligibility Criteria.
2. Contact issuers@usd.estate with the bond documentation and token details.
3. The Operating Company runs diligence. If the bond qualifies, the Foundation multisig queues it through the allowlist timelock.
4. Once the timelock has passed and the token identity is registered, the strategy multisig can allocate.