Introduction to Pipeline
On-chain yield from global commodity trade.
What Pipeline does
Pipeline is a decentralised commodity trade finance protocol that produces on-chain yield from asset-backed commodity financing loans — high yield, short duration, hard collateral-backed, self-liquidating. The decentralised way of accessing trade-finance returns: safer than a traditional trade finance fund, with the liquidity and transparency only an on-chain platform delivers.
Lenders deposit USDC and receive PLUSD, a 1:1 dollar receipt. PLUSD can be staked into sPLUSD to earn yield. Pipeline deploys deposited USDC into senior tranches of short-duration commodity trade loans — for instance, copper from Chile, jet fuel from South Korea, wheat from Australia — sourced and underwritten by qualified Loan Originators who contribute the equity tranche on every deal. Senior coupons net of fees accrete into the PLUSD staking vault, lifting sPLUSD price.
How it differs from what exists today
| Traditional trade finance fund | Pipeline | |
|---|---|---|
| Access | Quarterly subscription windows; accreditation gates | Permissioned but programmatic — KYC and deposit any time |
| Liquidity | Quarterly redemptions, often gated | Withdraw any time; no lock-up |
| Transparency | Quarterly investor letter; limited deal disclosure | Every loan on a public on-chain registry |
| Capital efficiency | Cash sits idle awaiting the next deal | Idle USDC held as USYC, accruing T-bill yield |
| Counterparty risk | Manager discretion on selection | Risk committee approves every deal against published Credit Policy |
How it differs from on-chain credit protocols
Existing on-chain credit pools USDC against borrower-pledged collateral, often with thin underwriting and weak recovery rights. They have repeatedly suffered losses from undercollateralised lending and inadequate workout. Pipeline differs in three ways:
- Real underwriting — every loan underwritten by a professional Loan Originator with their own equity at risk.
- Physical collateral with enforceable rights — bills of lading, warehouse receipts, CMA agreements with centuries of commercial law behind them.
- Institutional custody — USDC principal sits in BitGo custody under multi-party quorum, not inside an exploitable contract.