❓FAQ

Frequently Asked Questions

What is BitU Protocol?

BitU is a crypto-native collateralized stablecoin protocol that leverages off-chain liquidity and efficiency to deliver higher on-chain yields.

BitU enables users to mint $BITU, a fully-backed stablecoin, using major crypto assets supported by the protocol.

What is BITU?

$BITU is a crypto-native stablecoin with embedded yield.

Can anyone mint $BITU?

No, minting $BITU in the initial stage is restricted to whitelisted partners who are eligible to mint $BITU using collaterals.

What can I use $BITU for?

You can deposit your $BITU into the Staking contract to earn yields. $BITU can also be used in other protocols across our growing ecosystem. Also, BitU Protocol is actively exploring additional use cases for $BITU.

Where does the yield come from?

The yield is generated through the Active Liquidity Management Module (ALMM). ALMM leverages off-chain liquidity and transaction efficiency to provide higher yields and capital efficiency for on-chain funds. Off-chain low-risk activities like lending and delta-neutral investment strategies serve as the source of yield.

What is ALMM?

ALMM stands for Active Liquidity Management Module, which is the core component of BitU Protocol. ALMM leverages off-chain liquidity and transaction efficiency to provide higher yields and capital efficiency for on-chain funds. It manages mirrored collaterals from custody addresses to centralized exchanges and collects yields.

What's the yield paid in?

The generated yield is paid in $BITU. However, the income generated by ALMM is not in BITU but in assets such as $USDT, $BTC, or others. These assets are then converted by ALMM into $BITU and distributed to investors in the Staking contract.

Where are collaterals stored?

All collaterals are safely stored in custody addresses.

How does BitU Protocol map collateral assets to centralized exchanges?

BitU Protocol utilizes a service called "OES" (Off-Exchange Settlement) to map collateral assets to centralized exchanges. It ensures that funds are always held in custody with a third-party custodian and never reside on centralized exchange servers. The collateral held by custodians can be mirrored onto centralized exchanges.

Does BitU Protocol have tokens?

Yes, the BitU Protocol features two tokens within its ecosystem:

• $BITU: This is the stablecoin of the protocol, designed to provide stability and act as a reliable medium of exchange.

• $sBITU: This token is earned by staking $BITU in the Staking contract. It allows users to participate in the protocol's yield generation activities.

It's important to note that BitU Protocol currently does not offer any governance tokens, focusing instead on the stablecoin functionality and staking rewards for users.