btcUSD

btcUSD is a stablecoin that is backed by Bitcoin, providing users with a secure and stable store of value. The btcUSD token is minted by collateralizing BTCB tokens, which are wrapped Bitcoin tokens on the Binance Smart Chain, at a minimum collateralization ratio of 120%. This overcollateralization ensures that the btcUSD token's value remains stable, even during market volatility.

The btcUSD token provides users with a variety of benefits, including low fees, high collateralization, and user incentives. As I mentioned earlier, there are no minting fees or borrowing fees involved in the BitUSD project. However, a one-time fee of 2% is charged for the redemption of btcUSD. This fee is relatively low compared to the potential benefits of using btcUSD.

Users can freely utilize btcUSD in various decentralized exchanges (DEX) and applications. Additionally, users can exchange their assets in the BTCB/btcUSD and USDT/btcUSD liquidity pools. This compatibility with various DEXs and applications provides users with a high degree of flexibility and convenience.

To improve asset utilization, the minting of btcUSD is halted when the collateralization ratio exceeds 200%. This mechanism prevents excessive collateralization and encourages users to redeem their btcUSD tokens, thereby increasing the project's efficiency.