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How to borrow against your Bitcoin at the cheapest rates

· 2 min read
Usamaro
Usamaro
Marketing Bunny

The story of Bitcoin isn't finished, and today marks the next chapter. Born from the conviction that Bitcoin can do more, Uncap is built to return Bitcoin to its peer-to-peer roots and turn it from a dormant asset into the productive backbone of a new financial system.

This guide will walk you through what Uncap is and how you can participate from day one.

What is Uncap?​

Uncap is a protocol for a BTC-backed stablecoin (USDU) built on Starknet. Inspired by Liquity's innovative model, Uncap creates a truly decentralized borrowing marketplace.

The core feature is that borrowers can choose and adjust their own interest rates. This unique design allows the market, not a centralized committee, to determine borrowing costs, fostering competitive rates for all users.

A Step-by-step guide: 3 ways to use Uncap today​

Mint USDU by Borrowing Against Your BTC​

Borrow USDU

  • Open a collateralised debt position by depositing your BTC to mint USDU.
  • Borrow and select the interest rate you wish to pay.
  • The protocol is non-custodial, meaning your BTC remains in your possession until you repay the debt.

Earn yield in the Stability Pool​

Earn Yield

  • Deposit your newly minted USDU into the Stability Pool to help secure the protocol.
  • In return for providing stability, you earn yield from interest revenue and help absorb liquidations.
  • Rewards in the Stability Pool are live from the moment of launch.

Provide liquidity on Ekubo​

LP Ekubo

Start doing more with your Bitcoin​

Visit uncap.finance to get started today and unlock the full potential of your Bitcoin.