Introduction to Uncap
Uncap serves as the liquidity engine for Bitcoin DeFi, functioning as essential infrastructure that powers the emerging economy built around productive Bitcoin utilization.
What is Uncap?
In its current iteration (Uncap v1), Uncap operates as a Bitcoin-centric borrowing protocol enabling users to deposit BTC as collateral and mint USDU, a USD-pegged stablecoin. The protocol delivers two core capabilities:
- 🏦 Borrow USDU: Mint stablecoins against your Bitcoin collateral
- 📈 Earn yield: Generate returns by depositing USDU into the Stability Pool
Protocol Architecture
Uncap builds upon Liquity v2's foundation, completely rewritten in Cairo and optimized for Starknet's architecture. Starknet being non-EVM, Uncap is not part of Liquity's Friendly Fork Program.
We recognize and appreciate the foundational work of the Liquity team and community, whose innovations made Uncap's development possible.
Governance and Security
Uncap v1 protocol contract upgrades require approval from a Security Council comprising respected leaders within the Starknet ecosystem. Uncap Labs GmbH, the company that developed Uncap, can't unilaterally modify protocol contracts.
Security Council Members:
User Participation and Rewards
Uncap Points System (Coming Soon)
The Uncap points system is launching soon and will recognize and reward user activities that contribute (or have contributed) to protocol growth and stability.
These activities should not only benefit individual users but also strengthen the overall protocol infrastructure (e.g. facilitate liquidations) and liquidity depth on popular DEXes (e.g. USDU/WBTC/USDC pools)
Future Development
Details about Uncap v2 will be revealed soon. Think ve(3,3).
🎯 Ready to get started? Explore our documentation to learn how to participate in the Uncap ecosystem and make your Bitcoin work for you.