📚bvUSD Explained

How bvUSD is minted, backed, and kept stable

What is bvUSD?

bvUSD is an institutional USD structured credit vault token. It is backed by Bitcoin variants and tokenized equities.

bvUSD is not minted from fiat reserves. It is minted through a collateralized borrowing flow.

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How bvUSD is created

Step 1: Deposit collateral (institutions)

Whitelisted entities deposit approved collateral:

• BTC (native Bitcoin)

• Wrapped BTC (WBTC, tBTC)

• Exotic BTC (e.g., bgBTC)

• BTC LSTs (liquid staking tokens)

• Tokenized equities (whitelisted securities tokens)

Step 2: Borrow stablecoins

Borrow USDC or USDT against collateral:

• Bitcoin assets: up to 73% LTV

• Tokenized equities: 50–65% LTV

Step 3: Mint bvUSD

Mint bvUSD 1:1 using the borrowed USDC/USDT. This links bvUSD supply directly to overcollateralized debt.

Step 4 (optional): Stake for sbvUSD

Stake bvUSD into sbvUSD. sbvUSD targets 12% APY via delta-neutral, market-neutral liquid-yield strategies (including market making and funding/basis capture).

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Retail minting path

Retail users can mint bvUSD directly 1:1 using USDC/USDT:

• https://app.bitvault.finance/buy

This keeps bvUSD accessible. It also provides a transparent stablecoin-backed mint path.

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What makes bvUSD unique

Multi-asset collateralization

• Bitcoin & derivatives: BTC, WBTC, tBTC, bgBTC, BTC LSTs

• Tokenized equities: whitelisted securities tokens

• Direct stablecoin minting: 1:1 via USDC/USDT

Conservative LTV

Collateral type	LTV	Collateral ratio	Effective backing
BTC / wrapped / exotic / LSTs	Up to 73%	137%	~$1.37 collateral per $1 bvUSD
Tokenized equities	50–65%	154%+	~$1.54+ collateral per $1 bvUSD

Dual access model

• Institutions: borrow against collateral, then mint bvUSD

• Retail: mint 1:1 with USDC/USDT, or buy on secondary markets

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Accepted collateral types

Bitcoin & derivatives

Asset	Description	LTV	Notes
BTC	Native Bitcoin	Up to 73%	Primary collateral
WBTC	Wrapped BTC (BitGo)	Up to 73%	High liquidity
bgBTC	Exotic BTC derivative	Up to 73%	Specialized wrapper
BTC LSTs	BTC liquid staking tokens	Up to 73%	Staked BTC representation

Tokenized equities

Tokenized equities must:

• Be issued by approved, regulated tokenization platforms

• Represent fractional ownership in publicly traded securities

• Meet liquidity and market cap requirements

• Pass governance whitelist voting

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Stability mechanisms

Primary mechanisms

• Over-collateralization: 137%+ (institutional) backing

• Multi-collateral diversification: BTC variants + equities

• Controlled minting: only whitelisted borrowers can mint via debt

• Automated liquidation: positions liquidated before insolvency

Liquidation triggers:

• BTC variants: liquidation at 85% LTV

• Tokenized equities: liquidation at 80% LTV

Supporting mechanisms

• sbvUSD yield engine: delta-neutral strategies targeting 12% APY

• Cross-market liquidity: DEX/CEX liquidity enables arbitrage

• Automated risk systems: oracles, monitoring, and thresholds

• Governance: DAO controls collateral policy and risk parameters

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Risk disclosure

bvUSD is not a fiat-backed payment stablecoin.

Redemption is for crypto assets (stablecoins or collateral), not fiat. BitVault is not a bank. Token balances are not insured. Collateral values can drop and trigger liquidations. Target yields are not guaranteed.