⛏️Liquidity
Learn how to mint the $BITU stablecoin
Minting $BITU
Currently, BitU Protocol implements a whitelist system in order to mint the $BITU stablecoin. Users who wish to mint $BITU must apply and undergo whitelist verification.
Whitelist Application
You can submit your minting application by sending it to hello@bitu.io email or by applying on this form. Once our team receives your application, we will follow up and process your request within less than 5 business days.
Whitelist Verification
Minting $BITU involves inherent risks, which we aim to keep within manageable limits. Recognizing that risk management awareness may be limited among many crypto users, we prioritize their protection by minimizing exposure to these risks. Most users can reduce risk and acquire $BITU through the secondary market to participate in the protocol and earn yield.
The whitelist verification assesses the risk management capabilities of users or institutions and the security of their fund sources. This process is crucial to prevent non-compliant behaviors or funds from entering the BitU ecosystem. Our approach is conservative to emphasize safety and risk management.
Supported Collateral Assets
During the initial phase, BTC (BTCB) is supported as the main asset to mint $BITU. We will consider adding more assets as collateral in the future.
| Asset | CR (Default) | CR (Min) | CR (Liquidation) | Link |
|---|---|---|---|---|
BTC | 200% | 200% | 110% |
Mint & Redeem $BITU
The BITU ERC20 contract defines the basic characteristics of the BITU ERC20 token. The Minter, which refers to the BITU minting and redemption contract, has the exclusive authority to mint any amount of $BITU to a specified address by calling the Mint function of the BITU ERC20 contract.
After undergoing whitelist verification, users can mint $BITU by calling the Mint function in the Minting contract through the Mint page on our website. The minting contract determines the amount of $BITU that can be minted based on the oracle price and the collateral ratio chosen by the user. During the minting process, users need to provide the following:
Select the collateral asset.
Enter the quantity of collateral.
Input the collateral rate or choose the default rate.
Users will receive the corresponding amount of $BITU they can obtain based on the collateral asset's price provided by the oracle. Users will then be asked to approve the transaction and wait for it to be executed on the blockchain.
During execution, there may be a time difference between the user's previewed quantity and the actual execution, so the final quantity of $BITU obtained may differ from what was initially displayed.
If the difference in quantity falls within the user's acceptable slippage range, the transaction will succeed; otherwise, it will fail. The default slippage tolerance at this stage is 0.1%. Minting fee is 0.15%.
Upon receiving $BITU, the collateral asset will be directly sent to the custody address by the minting contract. The custodial address serves as an onchain transparent storage for all collateral assets, and users can redeem their collateral by burning their $BITU in the redemption process.
No one can misappropriate or retrieve the collateral assets except for the depositors. The security of user collateral assets is one of the core functions of the BitU Protocol.
Collateral Rate
The collateral rate represents the ratio of the value of the user's collateral asset to the value of the minted $BITU. For example, if a user mints 100 $BITU using $250 USD worth of BTC as collateral, the collateral rate would be calculated as follows:
$250 / $100 * 100% = 250%.
The default collateral ratio (CR) refers to the recommended collateralization rate during the minting process.
The minimum collateral ratio indicates the lowest collateral rate that users can set if they want to maximize capital efficiency and mint the most $BITU with the same value of collateral.
Currently, the minimum collateral rate for risk assets is 200%. If a user has $250 USD worth of BTC as collateral, the maximum $BITU they can mint would be $250 / 200% = $125
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