Description
Ducat is a decentralized protocol that allows users to borrow UNIT, a stablecoin native to the Bitcoin L1, by using their Bitcoin (BTC) as collateral. The platform operates on a non-custodial basis, where users retain full control of their funds by depositing BTC into personal vaults. Users can borrow against their collateral and manage their risk through a dashboard that tracks their vault's health. The protocol is designed for transparency, allowing the entire system to be audited via on-chain data. A key feature is its liquidation mechanism, which helps maintain the stability of the UNIT peg by allowing other users to earn yield by recapitalizing distressed vaults, purchasing the underlying BTC at a discount. The Ducat SDK facilitates the local creation of BTC transactions, ensuring users maintain control over their funds while leveraging Bitcoin's security within the BTC-Fi ecosystem. The UNIT token is a Runes token.