📚bvUSD Explained
A new digital gold standard for stablecoins
🔹 What is bvUSD?
bvUSD is a Bitcoin-backed, USD-pegged stablecoin issued by BitVault, designed to function as a foundation for Bitcoin-native credit and yield.
Institutional users can also borrow bvUSD directly from BitVault at a 50% Loan-to-Value (LTV) ratio, guaranteeing a BTC-backed reserve comprised of Bitcoin, Bitcoin wrappers (e.g., WBTC, tBTC), or Bitcoin LSTs.
bvUSD is synchronously minted when users stake USDC or USDT into sbvUSD, BitVault’s yield-bearing stablecoin. Additionally, anyone can mint bvUSD directly at app.bitvault.finance/buy using USDC or USDT, creating a transparent 1:1 stablecoin-backed minting path.
🔹 What makes bvUSD unique?
bvUSD combines Bitcoin-backed security with flexible collateral pathways and synchronous yield generation:
2:1 BTC Reserve Ratio: Each bvUSD borrowed is backed by twice its value in Bitcoin or Bitcoin derivatives.
Synchronous Minting: Every sbvUSD deposit simultaneously mints and burns bvUSD, ensuring full on-chain accountability.
Multi-Collateral Support: Supports BTC, Bitcoin LSTs, USDC, and USDT to diversify stability sources.
Dual Access Model:
Retail users mint bvUSD 1:1 with stablecoins.
Institutions borrow bvUSD against BTC collateral at 50% LTV.
Permissioned Borrowing, Permissionless Minting: Institutional minting remains controlled while retail access stays open and transparent.
Real Yield Infrastructure: sbvUSD converts deposited capital into market-neutral strategies through BitVault’s institutional partners, creating sustainable return flow to back bvUSD.
🔹 Supporting Stability Mechanisms
BitVault employs several stability mechanisms to maintain the bvUSD peg:
Additional mechanisms enhance peg resilience and long-term sustainability:
sbvUSD Yield Engine: sbvUSD serves as a yield-bearing vault that continuously synchronizes with bvUSD issuance, distributing returns generated by market-neutral strategies.
Cross-Market Liquidity: bvUSD will maintain deep liquidity across DEXs, CEXs, and derivatives venues to reinforce arbitrage efficiency.
Automated Risk Management: Programmatic liquidation thresholds and BTC-based LTV management protect solvency at all times.
Governance: The BitVault DAO oversees collateral policy, interest parameters, and reserve transparency through on-chain governance.
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