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bitcoinBitVault Overview

Institutional-grade structured credit protocol powering bvUSD and sbvUSD

BitVault is an institutional-grade structured credit protocol. It issues bvUSD and manages sbvUSD, a yield-bearing structured product, effectively operating as a:

  • Lending Protocol

  • CDP Stablecoin

  • Fund of Funds

BitVault lets whitelisted institutions unlock USD liquidity. They post Bitcoin variants or tokenized equities as collateral. They keep full economic exposure to the underlying assets.

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Resources

  • Website: https://www.bitvault.finance

  • X (Twitter): https://x.com/BitVaultFinance

  • Telegram: https://t.me/bitvaultfinance

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Protocol overview

BitVault runs a three-layer flow:

  1. Deposit collateral (permissioned)

  2. Borrow stablecoins (USDC/USDT) against the collateral

  3. Mint bvUSD 1:1 with the borrowed stablecoins

Users can then stake bvUSD into sbvUSD. sbvUSD targets 12% APY via delta-neutral strategies.

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Key features

  • Permissioned borrowing for whitelisted institutions

  • Multi-asset collateral

    • BTC, WBTC, tBTC

    • Exotic BTC (e.g., bgBTC)

    • BTC LSTs

    • Whitelisted tokenized equities

  • Structured yield product: sbvUSD, managed by BV Labs Ltd.

  • Delta-neutral execution aiming to avoid directional risk

  • Bits Program for incentives and rewards

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How BitVault works

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Step 1: Deposit collateral

Whitelisted institutions deposit approved collateral. Assets are held in qualified institutional custody.

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Step 2: Borrow stablecoins

Institutions borrow USDC or USDT at conservative LTV.

  • Bitcoin assets: up to 73% LTV (137% collateral ratio)

  • Tokenized equities: 50–65% LTV (154–200% collateral ratio)

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Step 3: Mint bvUSD

Borrowed stables mint bvUSD 1:1. Every bvUSD is backed by an overcollateralized position and/or stablecoins.

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Step 4: Stake for sbvUSD

Stake bvUSD to receive sbvUSD shares. BV Labs Ltd. deploys capital into delta-neutral strategies.

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bvUSD

bvUSD is the protocol’s structured credit vault token. It is created from collateralized borrowing by whitelisted institutions.

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Collateral backing

Collateral type
Examples
LTV
Collateral ratio

Native Bitcoin

BTC

Up to 73%

137%

Wrapped Bitcoin

WBTC, tBTC

Up to 73%

137%

Exotic Bitcoin

bgBTC

Up to 73%

137%

Bitcoin LSTs

Various

Up to 73%

137%

Tokenized equities

Whitelisted securities

50–65%

154%+

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Stability mechanisms

  • Over-collateralization across all positions

  • Multi-collateral diversification across BTC variants and equities

  • Controlled institutional minting via whitelisting

  • Automated liquidations before undercollateralization

  • Retail minting path: 1:1 with USDC/USDT

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sbvUSD

sbvUSD is the yield-bearing structured product. It is managed by BV Labs Ltd.

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Structured product design

  • Maintains economic exposure to BTC and tokenized equity collateral

  • Uses delta-neutral, market-neutral strategies

  • Targets 12% APY

  • Avoids directional market bets

  • Prioritizes capital preservation and liquidity in stressed markets

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Strategy allocation

  • Basis trading

  • Delta-neutral hedging (spot vs perp)

  • Cross-exchange arbitrage

  • Tokenized equity strategies (e.g., securities lending, RWA yield)

  • Market making via institutional partners

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Institutional partners

  • GSR

  • Auros

  • Anti Capital

  • LM5

  • Galaxy

  • FalconX

  • Keyrock

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Permissioned design

Borrowing is permissioned. Retail usage is open.

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Why permissioned

  • Risk-managed borrowers

  • KYC/AML compliance for institutions

  • Conservative LTV parameters

  • Professional oversight for strategy deployment

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Retail access

  • Mint bvUSD with USDC/USDT at https://app.bitvault.finance/buy

  • Stake bvUSD for sbvUSD

  • Trade bvUSD on DEXs/CEXs

  • Earn Bits through the rewards program

NextbvUSD Explained

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