❓FAQ

Frequently Asked Questions

What is BitU Protocol?

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.

What is $BITU?

$BITU is a crypto-native, fully-backed, and over-collateralized stablecoin.

Can anyone mint $BITU?

No, minting $BITU in the initial stage is restricted to whitelisted partners who are eligible to mint $BITU using supported collateral assets. Users can apply to the whitelist using this form.

What are the potential uses for $BITU?

Users can deposit $BITU into the staking contract to earn real yield. $BITU can also be used in other protocols across our growing ecosystem as we actively explore additional use cases for $BITU.

Where does the yield come from?

The yield is generated through the Active Liquidity Management Module (ALMM) which 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?

The ALMM, which is the core component of BitU Protocol, manages mirrored collateral assets from custody addresses to centralized exchanges and collects yield.

How is the yield distributed?

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

Where are collateral assets stored?

All collaterals are safely stored in custody addresses.

How does BitU Protocol mirror collateral assets to centralized exchanges?

BitU Protocol utilizes a service called "OES" (Off-Exchange Settlement) to mirror collateral assets to centralized exchanges. It ensures that funds are always held in custody with a secure custodian and never reside on centralized exchange servers.

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 received by staking $BITU, enabling users to earn real yield.

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