TBUSD Whitepaper

The Treasury-Backed Stablecoin with Token Recovery

Table of Contents

  1. Executive Summary
  2. The Problem: Lost Tokens
  3. The TBUSD Solution
  4. Cross-Chain Recovery System
  5. Paid Gasless Transfers
  6. Token Mechanics
  7. Reserve Management
  8. Governance & Security
  9. Compliance Architecture
  10. Risk Management
  11. Launch Roadmap
  12. Contact Information

1 Executive Summary

TBUSD is a USD-pegged stablecoin backed by short-term U.S. Treasury Bills that solves a critical problem no other stablecoin addresses: token loss prevention.

The Core Differentiator

"TBUSD: The only stablecoin that recovers your lost tokens"

  • Sent TBUSD to Ethereum instead of Base? We recover it for 2% fee.
  • Sent to Coinbase deposit address on wrong chain? We recover it.
  • Tokens stuck on wrong network? We recover it.

NO OTHER STABLECOIN OFFERS THIS SERVICE.

Key Features

  • ProofOfReserves: Can't mint more tokens than we have reserves
  • Cross-Chain Recovery: 0.1% instant (user controls wallet) or 2% CEX
  • Same-Address Protection: Recovery always goes to the same address you sent from
  • UUPS Upgradeable: Can fix bugs and add features without redeployment
  • Treasury Bill Backing: Reserves held in U.S. government securities
  • Regulatory Compliant: No direct redemption/purchase (market-traded only)
  • Professional Code Base: Built on OpenZeppelin audited contracts

Key Features

  • RecoveryProtocol: Manual cross-chain recovery service with same-address constraint
  • ProofOfReserves: Can't mint more tokens than we have reserves
  • Rate Limiting: Supply controls prevent rapid minting and manipulation
  • Time-Based Security: Rolling windows prevent gaming and ensure fairness
  • On-Chain Transparency: Reserve attestations recorded on-chain for public verification

Network Deployment

  • Primary Chain: Base (low fees, fast transactions)
  • Recovery Supported: Manual recovery between any EVM chains where TBUSD is deployed
  • Current Status: Testnet deployment complete, mainnet launch pending audit

2 The Problem: Lost Tokens

2.1 The Lost Token Problem

Cryptocurrency users frequently lose funds due to a simple mistake: sending tokens to the wrong network.

Common Scenarios:

  • CEX Deposits: User sends USDC to Coinbase Ethereum address, but token only exists on Base → Funds stuck
  • Wrong Bridge: Bridging error sends tokens to unintended chain
  • Wallet Confusion: Same address, different networks, token doesn't exist → Permanently lost

With current stablecoins (USDC, USDT, DAI), there is no recovery option. Your $10,000 is gone forever.

2.2 Why Other Stablecoins Can't Help

USDC, USDT, DAI:
  • Cannot burn tokens from addresses they don't control (CEX addresses)
  • No mechanism to verify ownership and execute recovery
  • No business model for recovery service
Result: Millions lost permanently, users frustrated, adoption hindered.

3 The TBUSD Solution

3.1 Manual Cross-Chain Recovery Service

TBUSD offers the cryptocurrency industry's first token recovery service for wrong-network deposits.

How It Works:

  1. User emails [email protected] with recovery request details
  2. User pays recovery fee: 0.1% (if they control the wallet) or 2% (CEX addresses)
  3. We verify ownership and process the request
  4. We burn tokens from stuck address on wrong chain
  5. We mint tokens to SAME address on correct chain
  6. User withdraws from CEX/wallet on correct chain

3.2 Fee Structure

Recovery Fees:
  • 0.1% fee: User controls the stuck wallet (can sign a message proving ownership)
  • 2% fee: CEX addresses or other wallets user doesn't control (requires manual KYC verification)

Simple pricing model:

  • Instant recovery (0.1%): User signs message from stuck wallet = minimal verification needed
  • CEX recovery (2%): Manual process with KYC verification and proof of account ownership
  • Security focus: Fees designed to prevent fraud, not maximize revenue
Examples:
  • $10,000 recovery (user controls wallet): $10 fee (0.1%)
  • $10,000 recovery (CEX address): $200 fee (2%)
  • $1,000 recovery (user controls): $1 fee (0.1%)
  • $1,000 recovery (CEX): $20 fee (2%)

3.3 Security: Same-Address Constraint

Anti-Fraud Protection

Recovery ALWAYS goes to the same address:

  • Wallet A on Ethereum → Wallet A on Base (NEVER to different address)
  • Economic security: Only owner would pay 2% to recover to their own address
  • Prevents theft: Nobody pays to move someone else's tokens to an address they already own

3.4 Why Manual, Not CCIP?

Chainlink CCIP (Cross-Chain Interoperability Protocol) is excellent for trustless bridges, but it doesn't solve our problem:

  • CCIP requires user to sign burn transaction → Users don't control CEX addresses
  • Manual verification is unavoidable → We must verify ownership regardless
  • CCIP is more expensive → $11-55 per recovery vs our $10-50 cost
  • Service business > Infrastructure → Users need customer support, not just smart contracts

TBUSD's manual process provides better UX, lower cost, and allows us to block fraud/harassment.

4 Cross-Chain Recovery System

4.1 Contract Functions

Key Functions (Manual Recovery Service):
  • Manual burn and mint process - not automated via smart contract
  • Operations wallet executes burns on source chain
  • Operations wallet executes mints on target chain
  • Same-address constraint enforced manually
  • KYC verification for CEX addresses
  • Recovery blocklist for preventing harassment

Note: TBUSD implements a manual recovery service. Automated contract functions may be added in the future.

4.2 Fee Structure

Recovery Fees:
  • 0.1% fee: User controls the stuck wallet (can sign a message proving ownership)
  • 2% fee: CEX addresses or other wallets user doesn't control
  • Gas costs: Covered by recovery fee

4.3 User Burn Capability

TBUSD also inherits ERC20Burnable, allowing users to burn their own tokens for third-party bridging services (Stargate, LayerZero, etc.).

5 Gasless Transfers

5.1 Send TBUSD Without Needing ETH

One of the biggest barriers in crypto: You need ETH to send tokens, but you can't get ETH without already having ETH.

TBUSD solves this. You can send TBUSD without owning any ETH.

How It Works:

  • You sign a transaction with your wallet (no ETH needed)
  • Our relayer submits the transaction and pays the gas fee
  • Gas cost is deducted from your TBUSD transfer amount
  • Simple, seamless - you just send TBUSD like any other token

Result: New users can receive TBUSD and immediately send it anywhere - no need to buy ETH first.

Note: Gasless transfer infrastructure will be available at mainnet launch.

6 Token Mechanics

6.1 Basic Properties

  • Name: TBill USD
  • Symbol: TBUSD
  • Decimals: 6 (USDC standard)
  • Blockchain: Base (primary), Ethereum (recovery supported)
  • Standard: ERC-20 + ERC-2771 (meta-transactions) + UUPS proxy

6.2 Contract Architecture

Base Contracts:
  • ERC20Upgradeable - Standard token functions
  • ERC20PermitUpgradeable - Gasless approvals
  • ERC20BurnableUpgradeable - User burning capability
  • PausableUpgradeable - Emergency stop
  • AccessControlUpgradeable - Role-based permissions
  • UUPSUpgradeable - Upgradeable proxy pattern
  • ERC2771ContextUpgradeable - Meta-transaction support

6.3 Supply Management

  • No hard cap: Supply grows with reserves
  • Minting: Only by MINTER_ROLE (multisig-controlled)
  • Burning: Users can burn own tokens OR operations can burn from treasury
  • Upgradeable: Bug fixes and feature additions without redeployment

7 Reserve Management

7.1 Reserve Composition

Target Allocation:
  • 90-95%: Short-term U.S. Treasury Bills (<1 year maturity)
  • 5-10%: Cash in FDIC-insured bank accounts
  • 0-5%: Temporary stablecoin holdings (USDC, USDT for operations)

7.2 Yield Utilization

Treasury yield (~4.8% APR on T-Bills) funds:

  1. Market-making operations and liquidity
  2. Exchange listing and maintenance fees
  3. Recovery service operational costs
  4. Gasless transfer relay costs
  5. Reserve buffer growth

7.3 Transparency Commitments

On-Chain Attestations:
  • ProofOfReserves contract tracks reserve backing
  • Attestor role updates reserves monthly (minimum)
  • Public dashboard shows reserves vs circulating supply
Professional Audits:
  • Annual CPA attestation when reserves exceed $10M
  • Smart contract security audit (pending)
  • Full reconciliation of T-Bill positions and bank accounts

8 Governance & Security

8.1 Role-Based Access Control

TBUSD uses 5 USDC-style roles for security and operational efficiency:

Role Permissions Holder
DEFAULT_ADMIN_ROLE Grant/revoke all roles Governance wallet (multisig planned)
MINTER_ROLE Mint tokens, process recoveries Operations wallet (multisig planned)
PAUSER_ROLE Pause/unpause contract Governance wallet
BLACKLISTER_ROLE Blacklist/unblacklist addresses Operations wallet
UPGRADER_ROLE Upgrade contract implementation Governance wallet

8.2 Key Management

TBUSD uses hardware wallet security for all privileged operations:

  • Operations wallet: Daily operations (mint, recovery, blacklist) - multisig planned for production
  • Governance wallet: Critical changes (pause, upgrade, role management) - multisig planned for production
  • Guardian wallet: Emergency pause only (deep cold storage) - multisig planned for production
  • Attestor wallet: Updates ProofOfReserves within 30-minute window
  • Hardware wallet security: All private keys stored on hardware wallets, never on networked devices

8.3 Upgrade Capability (UUPS)

TBUSD can be upgraded to fix bugs or add features without changing the contract address:

  • Proxy pattern: User-facing address never changes
  • Storage preservation: All balances and state maintained across upgrades
  • Controlled by UPGRADER_ROLE: Only governance wallet can upgrade
  • Tested extensively: Comprehensive testing including upgrade scenarios

9 Compliance Architecture

9.1 Regulatory Positioning

TBUSD Does NOT Offer Redemption Services

This is non-negotiable for regulatory compliance:

  • ❌ Users CANNOT purchase TBUSD from us
  • ❌ Users CANNOT redeem TBUSD with us
  • ✅ We mint to treasury, sell on DEX
  • ✅ Market determines peg through trading
  • ✅ No money transmitter license needed
  • ✅ No KYC/AML infrastructure needed

9.2 What We Are

  • Digital asset issuer (TBUSD, Inc.)
  • Market maker (provide DEX liquidity)
  • Recovery service provider (for lost tokens)

9.3 What We Are NOT

  • Money transmitter (no retail transfers)
  • Money services business (no customer funds)
  • Securities issuer (no investment contract)

9.4 Compliance Boundaries

Entity Customer Contact KYC Required MSB Registration
TBUSD, Inc. Recovery service only Yes (for recovery) No
DEX (Uniswap, Curve) Yes (trading) No (on-chain) No
CEX (if listed) Yes (trading) Yes (by exchange) Yes (exchange has)

10 Risk Management

10.1 Peg Risk

Mitigation Strategies:
  • Target 100%+ reserves (verified pre-mint)
  • Active market-making in tight range ($0.99-$1.01)
  • Multiple DEX listings for liquidity (Uniswap, Curve)
  • No leveraged positions or lending
  • Regular attestation of reserves

10.2 Smart Contract Risk

Security Measures:
  • Built on OpenZeppelin audited contracts
  • UUPS proxy pattern (industry standard)
  • ReentrancyGuard on critical functions
  • Access control on all privileged functions
  • Pausable for emergencies
  • Comprehensive in-house security testing completed
  • External audit pending

10.3 Regulatory Risk

Advantages:
  • No direct retail interface (DEXs handle)
  • Clear wholesale model documentation
  • Ability to enhance compliance if needed
  • Recovery service is B2B (user-initiated, KYC for fraud prevention)

10.4 Market Risk

Protections:
  • T-Bills are short-term (low interest rate risk)
  • Minimal credit risk (U.S. government backed)
  • No algorithmic mechanisms (no death spirals)
  • Over-collateralization provides cushion

10.5 U.S. Government Risk

Critical Dependency

TBUSD's reserve backing depends on:

  • U.S. government creditworthiness (T-Bill obligations)
  • Federal Reserve operations (payment system)
  • Banking system stability (FDIC insurance, wire transfers)

By holding TBUSD, you acknowledge the token's backing is only as strong as the U.S. government's ability to pay its T-Bill obligations.

11 Launch Roadmap

Phase 1: Testnet Validation (Complete)

  • ✅ Testnet deployment complete and operational
  • ✅ ProofOfReserves preventing over-issuance
  • ✅ RecoveryProtocol tested (manual cross-chain recovery)
  • ✅ Hardware wallet key management implemented
  • ✅ Cross-chain recovery flow verified
  • ✅ Reserve verification working

Phase 2: Mainnet Preparation (In Progress)

  • Production hardware wallet configuration
  • External smart contract audit
  • Initial reserve acquisition (T-Bills + cash)
  • Recovery service website development
  • Operational infrastructure setup

Phase 3: Mainnet Launch

  • Deploy to Base mainnet (primary network)
  • Deploy to Ethereum mainnet (recovery support)
  • Transfer all roles to hardware wallet-secured addresses
  • Launch DEX liquidity (Uniswap, Curve)
  • Launch recovery service ([email protected])
  • Launch operational services

Phase 4: Growth (Months 1-12)

  • Scale to $1M+ circulating supply
  • Process first 100 cross-chain recoveries
  • Add support for additional chains (Polygon, Arbitrum, Optimism)
  • Tier-1 CEX listing discussions
  • Target $10M+ reserves by year-end

12 Contact Information

For questions about TBUSD:

TBUSD, Inc.
30 N Gould St #56241
Sheridan, WY 82801

Contract Addresses

Mainnet contracts will be published here upon launch.

For technical documentation and testnet deployment information, please contact [email protected].

Disclaimers

This whitepaper is for informational purposes only and does not constitute an offer to sell or solicitation to buy tokens. TBUSD tokens do not represent any ownership interest, debt claim, or redemption right against TBUSD, Inc. or its affiliates.

The $1.00 peg target is maintained through market operations without any guarantee of price stability or redemption value. Token value is determined solely by market forces on participating exchanges.

TBUSD, Inc. reserves the right to modify operations, pause issuance, or wind down the program at any time at its sole discretion. Past performance of Treasury yields does not guarantee future returns.

Not available to residents of prohibited jurisdictions or sanctioned persons. Users must comply with all applicable laws in their jurisdiction.

Recovery service disclaimer: Cross-chain recovery is provided on a best-effort basis subject to verification of ownership. TBUSD, Inc. reserves the right to refuse service, block fraudulent requests, and veto recoveries at its sole discretion. Recovery fees are non-refundable.

Last Updated: November 2025

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