✨Solution
A New Paradigm in Onchain Stability and Credit
Last updated
A New Paradigm in Onchain Stability and Credit
Last updated
BitU Protocol is a decentralized credit network and omni-trading hub powered by the overcollateralized $BITU stablecoin that can be staked to earn real yield. Access deep liquidity across numerous markets from a single unified experience.
$BITU, an over-collateralized stablecoin primitive backed by mainstream crypto assets, aims to strike a perfect balance by addressing the advantages and disadvantages of existing stablecoins in the market.
BitU Protocol maintains the stability of the $BITU peg by ensuring that the value of collateral assets consistently surpasses the circulating supply of $BITU in the market, thereby stabilizing the price of $BITU at the peg price.
Furthermore, BitU Protocol employs the ALMM to amplify the capital efficiency of collateral assets, generating secure profits that are subsequently redistributed to users. This is dissimilar to holding $USDT or $USDC, where the issuer gains the yield from underlying assets such as USD or government bonds. Users holding these centralized stablecoins do not receive any share of the profits.
By minting the $BITU stablecoin, users' deposited collateral assets will be securely held by our licensed custodians and mirrored into exchanges. Only the user can access their deposited assets, as the mirrored collateral assets do not use deposits to trade.
The mirrored collateral assets are used for two main purposes:
Lending
Market-neutral investment strategies
Neither of these activities will affect the deposits. The ALMM aims to maximize profits, which are ultimately minted into new $BITU and distributed to $sBITU holders. Additionally, the ALMM provides sufficient liquidity for $BITU in the market and ensures smooth minting and redemption processes.
Regarding censorship resistance, anyone can use $BITU, as it does not require users to have a bank account or undergo identity verification. BitU aims to enable everyone to enjoy inclusive access to Web3 financial services.
BitU Protocol's advantages focus on decentralization, security, and stability regardless of the market condition. BTC depositors are able to retain the value of their Bitcoin as the price increases while enjoying access to a yield generating stablecoin through staking.
The omni-trading hub provides users with a convenient solution to trade numerous assets with deep liquidity and lower fees through an aggregation of centralized exchange order books. Users can deposit $BITU as collateral to access margin trading and perpetuals, while retaining full control to withdraw at any time.
