From Passive Store of Value to Active Monetary Base
Bitcoin was designed to be your bank, not just your savings account. BTCD activates your dormant capital, turning idle reserves into a double-strength treasury that funds growth without dilution.
Segregated Collateral. No Commingling.
No Rehypothecation.
Issuance Discipline
BTCD Is Not "Printed." It Is Permitted.
Minting is conditional on three simultaneous constraints. If any constraint is violated, mint requests fail deterministically.
Vault Constraint (Local)
Mint allowance is determined by individual collateral value, volatility-adjusted margins, and oracle confidence.
System Constraint (Global)
System-wide issuance is capped based on total on-ledger collateralization, liquidity depth, and peg-health status.
Market Constraint (Execution)
Minting throttles if BTCD/USD depth is insufficient or spreads widen beyond tolerance bands.
No Forced Liquidation
The "Freeze-Only" Architecture
BTCD rejects the standard DeFi model of "reflexive liquidation," where collateral is sold into a crashing market to defend a peg.
Constraint Mode Activates
Minting halts immediately when risk thresholds are breached.
No Auto-Sell
The protocol does not sell user BTC. Your collateral remains yours.
User Resolution
Reduce leverage via repayment (Extinguish) or post additional collateral. Vaults may enter protective freeze, but ownership remains intact.
Peg Architecture
Stability via Structure, Not Narrative.
BTCD maintains its USD reference through a layered control system. Collateral is never sold to defend the peg.
1Dynamic fee surfaces and mint/burn incentives manage supply expansion and contraction.
2Integration with BLP inventory, market-maker rails, and protocol-owned liquidity (POL).
3A distinct peg-defense treasury can buy back BTCD under discount conditions or deploy liquidity to stressed venues.
4Emergency modes include mint pauses, redemption queuing, and parameter hardening.
The Lifecycle
Mint → Use → Extinguish
Vault Initialization
Instantiate a segregated BTC vault.
BUMP Activation
Create a mint position with defined parameters.
Mint
Issue BTCD against your BUMP within the allowed envelope.
Deploy
Use BTCD for transfers, swaps, OTC settlement, or payment rails
Extinguish
Close the BUMP by burning BTCD to release collateral.
System States & Transparency
Explicit Modes. Deterministic Behavior.
Standard minting, fees, and routing.
Adjusted fee incentives, increased POL deployment, mint throttles engaged.
Minting paused, redemption queued, emergency governance enabled.
The system exposes real-time data for total supply, vault registry status, issuance utilization, and peg health. This supports Proof-of-Reserves reporting and institutional auditability.
The Strategic Difference
A stable asset that inherits Bitcoin's hardness without inheriting bank credit risk.
Traditional stablecoins optimize for velocity and bank integration but remain dependent on regulatory stability and correspondent banking networks.
BTCD Optimizes For:
Bitcoin Sovereignty + Dollar Liquidity
Issuance Discipline without Liquidation Reflexivity
Institutional-Grade Collateral Segregation
Your vault enters the 'Red Zone' (<115% Collateral Ratio). We freeze new minting and withdrawals, but we do not sell your BTC. You can choose to add collateral or repay part of the loan to unfreeze it.
We do not pay yield on deposited BTC. You generate your own yield by minting BTCD and deploying it into the market (RWAs, Arbitrage, Liquidity Provision).
No. The vault is a 2-of-3 multisig. Moving funds requires 2 signatures. You hold one key, and the third key is time-locked for recovery. We cannot move funds unilaterally.
Unlike DeFi protocols that sell your collateral to pay off your debt, we simply freeze your vault. If your Collateral Ratio falls below 115% (The Red Zone), your BUMP enters a 'Frozen' state. You cannot mint new BTCD or withdraw collateral, but your Bitcoin is NOT sold. You retain ownership. To unlock your vault, you can either top up by adding more BTC, repay by burning BTCD, or wait for the price to recover.
Stability is maintained by the Protocol Treasury, not by liquidating users. If a user is in default and the system is under-collateralized, the Great One Treasury steps in as the 'Buyer of Last Resort'. The Treasury uses reserve assets to buy back BTCD from the open market, reducing supply and restoring the peg, effectively shielding individual users from forced selling events.
We can freeze the Protocol (minting/burning), but we cannot move your Bitcoin. Your Vault is a 2-of-3 Multisig on the Bitcoin network where you hold Key 1 on your device, we hold Key 2 for co-signing valid requests, and Key 3 is a time-locked recovery key. We cannot move funds without your signature.
We do not lend, rehypothecate, or 'farm' your Bitcoin. Your BTC sits idle in the vault. Any yield comes from how you use your BTCD. Once you mint BTCD, you can deploy it into approved liquidity pools, real-world asset (RWA) strategies, or yield-bearing stablecoin accounts provided by third-party partners.
It is a simple 'Repay & Release' cycle. Acquire the amount of BTCD you owe (plus a small tenure fee), click 'Extinguish' in your dashboard to burn the BTCD, and the smart contract automatically co-signs the release transaction, returning your original Bitcoin to your wallet.