Q: What is STRIPS (Separate Trading of Registered Interest and Principal of Securities)?

Traditional bonds pay interest periodically during the holding period, while STRIPS separate these interest and principal payments into multiple individually tradable securities.

STRIPS are investment products derived from separating the interest and principal cash flows of U.S. Treasury bonds. For example, a 10-year U.S. Treasury bond (with semiannual coupon payments) can be split into 21 STRIPS—20 interest STRIPS with different maturities and 1 principal STRIP maturing in 10 years.

Unlike regular bonds, STRIPS do not distribute any coupon payments as they represent single cash flows. They are zero-coupon bonds that make a lump-sum payment at maturity, making them suitable for short-term trading strategies or long-term saving plans.

Q: Features and Advantages of Stablecoin-Based STRIPS

• Simplified Cash Flow: Unlike traditional U.S. Treasury bonds that pay coupons semiannually, STRIPS pay only once at maturity, eliminating the need to track multiple cash flows.
• Eliminates Reinvestment Risk: Since STRIPS do not pay periodic coupons, users are not exposed to the risks and uncertainties associated with reinvesting those coupons.
• Promotes Financial Innovation: The application of STRIPS technology supports the development of more complex financial instruments such as mortgage-backed securities and structured bonds. It also enables flexible subscription choices—whether separating interest/principal or combining full bonds—laying the foundation for derivative product innovation.

Q: Risks and Considerations of Stablecoin-Based STRIPS

• Currency Risk: If the STRIPS are denominated in stablecoins, users may face exchange rate fluctuations. Though these STRIPS may offer higher returns than traditional bonds, if the stablecoin depreciates against the local currency at the time of redemption, it may reduce the actual returns.
• Liquidity Risk: STRIPS may have lower trading volumes in the secondary market compared to traditional bonds. Users seeking to sell before maturity may encounter difficulty finding buyers and may have to sell at a discount.

Q: Association with ETH

Due to the decentralized nature of blockchain, all participation processes are anonymous. Only after paying the ETH gas fee will the wallet address be confirmed and activated.

Earnings are received in ETH and can be manually converted to USDT and withdrawn to your wallet.

Q: User Instructions

Only supported via wallet-integrated Dapp browser

1. Transfer USDT into your wallet using the ERC20 network
2. Access the platform through the wallet’s Dapp browser
3. Minimum 280 USDT required to participate in the project
4. Assets must be held for 24 hours to receive corresponding interest payouts