💡How do we work?

MakerDAI's model, when adapted to a Bitcoin-based framework, operates in the decentralized finance (DeFi) ecosystem by utilizing Bitcoin's liquid staking tokens to offer novel financial services. Here's a reimagined outline of MakerDAI's operation, with specific elements replaced to fit a Bitcoin-centric protocol:

• Minting of USBD Stablecoin: Users can mint a stablecoin, USBD, by providing Bitcoin liquid staking tokens as collateral. This process involves depositing accepted forms of Bitcoin-based LSTs into the protocol. These tokens represent staked Bitcoin that earns staking rewards, making them valuable collateral for minting USBD.

• Incentivization on Curve and Convex Finance Analogs: To enhance the utility and appeal of USBD within the DeFi space, the protocol will incentivize its circulation and staking on platforms like Curve and Convex Finance. Users can earn additional rewards by providing liquidity with USBD on these platforms, including trading fees, CRV (Curve's token), CVX (Convex Finance's token), and BIMA (the protocol's own token).

• Decentralized and Non-Custodial: The infrastructure is designed to be both decentralized and non-custodial, ensuring users maintain control over their assets. This approach aligns with the DeFi movement's principles, emphasizing transparency, user sovereignty, and minimal reliance on centralized financial institutions.

• Governance Through BIMA Token: The BIMA token is pivotal in the governance of the protocol. BIMA holders can participate in decision-making processes regarding the protocol's development, such as adjustments to collateral parameters, fee structures, and other crucial elements that influence the system's functionality and security.