The USBD Stablecoin

Key Features of USBD

1. Total Value Locked (TVL)

Bima aims to secure a substantial TVL, which reflects both the strength of the platform and the trust of its users. A higher TVL not only indicates increased liquidity but also reinforces the stability and reliability of the USBD ecosystem. With significant TVL backing USBD, users can confidently interact with the protocol, knowing that it is underpinned by deep liquidity and robust collateral reserves. We'll have instiutitional credit products building alongside degen yield farming.

• Why It Matters: A high TVL signals a healthy, active user base and ensures the protocol has ample liquidity to support large transactions, staking, and lending activities. This liquidity is essential for maintaining the stable value of USBD across various market conditions.

2. Minted USBD

Bima Protocol is designed to mint a substantial volume of USBD, reflecting the stablecoin’s utility and demand within the broader DeFi ecosystem. As users mint USBD by locking their BTC in collateralized vaults, the volume of minted USBD showcases how integral it has become for staking, borrowing, trading, and other financial activities.

• Why It Matters: The more USBD in circulation, the stronger the signal that the stablecoin is a trusted asset in DeFi, driving its adoption for everyday transactions and sophisticated financial strategies alike.

3. Minimum Collateral Ratio (MCR)

Bima maintains a high Minimum Collateral Ratio (MCR), typically requiring assets to be collateralized at 225% or more to ensure the stability of USBD. This ensures that every USBD issued is always backed by more value than the stablecoin itself, providing a robust safeguard against market volatility.

• Why It Matters: A high MCR reduces the risk of under-collateralization, ensuring that even in adverse market conditions, the value of USBD remains stable and fully backed, fostering confidence in its peg to the US dollar.

4. Competitive Debt Interest Rate

The Bima Protocol offers a competitive debt interest rate, ensuring that borrowing and minting USBD remain attractive to users. The protocol balances this rate to maintain the cost of borrowing at a level that supports both long-term stability and affordability for users who lock up collateral to mint USBD.

• Why It Matters: Lower borrowing costs make it easier for users to mint USBD while still enjoying the benefits of leveraging their Bitcoin holdings, whether for additional investments, liquidity provision, or other DeFi activities. This competitive rate encourages more users to engage with the protocol, driving TVL and overall platform utility.

5. Staked BTC APR

USBD’s underlying protocol ensures that users who stake their BTC receive competitive Annual Percentage Rates (APR) on their staked BTC (stBTC). This feature not only makes staking attractive for investors looking to earn passive income but also ties the security of USBD directly to the ongoing success of Bitcoin staking activities.

• Why It Matters: Competitive APR rates on staked BTC offer a compelling incentive for long-term holders to participate in the Bima ecosystem, providing them with steady returns while also contributing to the stability and liquidity of the USBD market. As more BTC is staked, the overall strength of the protocol grows, benefiting all users.