> For the complete documentation index, see [llms.txt](https://docs.novabank.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.novabank.finance/introduction-to-the-operating-mechanism-of-the-novabank-protocol/treasury-contract.md).

# Treasury Contract

The treasury contract is a simple vault that holds all funds collected by the protocol. For example, if a user purchases a USDT bond, the USDT is fully received by the treasury in exchange for an equivalent amount of NVB. New NVB is minted based on the treasury's risk-free assets (RFV). (The RFV will be detailed in the Bond Contract section.)

* **Total Treasury Assets:** The total value of various assets entering the treasury through bond sales, including USDT, NVB-USDT LP, etc.
* **Total Treasury Risk-Free Assets:** The total risk-free value of various assets entering the treasury through bond sales. For instance, the value of USDT bonds equals the risk-free value of USDT bonds. The total value of LP bonds is greater than the risk-free value of LP bonds.Therefore, while the total treasury assets may decrease if the NVB price drops, the total treasury risk-free assets show a consistent upward trend.

NovaBank stipulates that each minted NVB is backed by $1 of treasury risk-free assets. As the treasury's risk-free assets increase, more NVB will be minted.