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Litepaper

Abstract

Torque is an automation protocol to streamline personal saving. It unifies the finest, non-custodial yield and loan opportunities to satisfy the key components of wealth generation while reducing friction, increasing transparency, and guaranteeing self-custody.

Introduction

Torque leverages DeFi infrastructure [1] to enhance digital asset ownership and surface the finest peer-to-pool opportunities. Torque is a transparent, flexible, and automated. Within a single transaction, users may capture diversified yield via Boost and/or access instant loans via Borrow, all while maintaining asset ownership. Thus, when saving via the Torque super highway, users enjoy far greater autonomy over their personal investments.

Vehicles

Vehicles are non-custodial smart contracts which route assets according to pre-defined strategies. They also perform automated functions such as rebalancing or compounding when necessary. Boost vehicles automate routing to multi-strategy ERC-4626 vaults [2] and facilitate the collection of yield by compounding it up to every 12 hours.

Users borrow for numerous reasons such as tax optimization, real world expenses, or to leverage their assets and with Torque, users remain only a click away from the highest quality yield opportunities on the blockchain. Utilizing Compound’s [3] bulker, Torque reduces complexity and accelerates interactions for users. This differentiated user experience is paramount in setting Torque apart from CeFi and DeFi competitors.

tTokens

When users deposit to Boost, they’re issued tToken receipts, such as tBTC or tETH. These are redeemable through the Torque interface or by directly interacting with Torque contracts. tTokens represent stakes/claims/earnings in the multi-vault strategies.

Torque USD

Torque USD, referred to as simply TUSD, is an EVM-compatible tokenized dollar to introduce a decentralized, yet familiar unit of account specifically geared towards personal saving. TORQ holders reserve the right to implement new collateral assets, adjust params, tailor fees or TORQ reward rate, deploy to new chains, and more. Liquidations, resulting from underwater loans in the context of Torque USD, are managed publicly with triggers based on liquidationThresholds. The TUSDEngine, code behind TUSD, allows for up to 98% collateralization of stable assets. These parameters are governed by TORQ holders.

TUSDSt

TUSD Strategies, referred to as TUSDSt, are routes which Torque users' deposits and withdrawals follow after Torque USD is minted. Regarding loan-to-value ratios, stable assets enjoy significantly greater amounts as compared to volatile ones. TUSDSt earnings may be directed to the Torque treasury. Pending TORQ holder vote, TUSDSt earnings may become claimable via an interface or directly through the underlying smart contracts.

Governance

TORQ is the governance token of Torque, a set of autonomous, decentralized smart contracts on the Arbitrum blockchain. Users and institutions may delegate TORQ voting power to themselves or aligned entities to control the protocol by voting for and against on-chain proposals executed by the Hamilton governor contract.

Holders may introduce new blockchain networks, features, adjust fee structure, rewards rates, treasury allocations, TUSD collateral assets, and more. Complete protocol decentralization is technically effective once ownership of TORQ is transferred to the governor and will be complete by Torque Inc. after TORQ has been widely distributed.

Tokenomics

By interacting with Torque smart contracts, including USD Farm, users earn TORQ claimable on the dashboard. Users may delegate voting power to determine treasury deployments, parameter optimization, chain expansion, and other initiatives. TORQ has an initial circulating supply of 11,121,512,940 and a total supply of 100,000,000,000.

Tokenomics

Revenue

Torque generates revenue directed to the treasury based on a combination of performance, management, liquidation, mint/burn, and swap fees. Fees are dynamic and subject to change based on governance vote. The best use of these funds may be determined by the community. Initially, the Boost product contains a 20% performance fee via compounded yield. There are no added fees in Borrow beyond liquidation.

Conclusion

Torque streamlines saving by laying a highway for digital assets, with contracts operating without the intervention of custody and in a 24/7 fashion. Sitting beneath the one-click user experience remains a growing, autonomous yield and loan network, powering the convergence of global savers. Torque cuts through noise and ensures savers are equipped with the full potential of programmable money.


  1. Stargate: Solving the Bridging Trilemma ↩︎

  2. ERC-4626 (EIP-4626) Tokenized Vaults ↩︎

  3. Compound: The Money Market Protocol ↩︎