[koolba]

That’s exactly the point. If you have up to X days, you hold US treasuries with maturities of up to X days.

You can also add clauses to the contract that allow earlier redemption into the underlying securities with redemption less than X days.

There’s a lot of ways to skin this cat and still pocket the spread in the general case.

[RandomLensman]

Sure, but doesn't that business model kind of exist then in the form of money market funds (and somewhat related in bank deposits) anyway? What's the new thing from a customer and business perspective?

[koolba]

Being able to take part in the defi ecosystem.

Being able to have all your money stolen with no recourse when you misplace your crypto pass phrase is new.