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Uncap x tBTC: Borrow against the Universal Bitcoin Reserve

· 2 min read
Usamaro
Usamaro
Marketing Bunny

tBTC Partnership

Uncap now supports tBTC as collateral.

This integration allows holders of tBTC to borrow USDU against their assets on Starknet. It aligns the decentralized architecture of the tBTC bridge with the user-defined borrowing markets of Uncap.

The Partnership​

Starting today, tBTC is available as a collateral type on the Uncap protocol.

tBTC provides a decentralized method for bringing Bitcoin onto Starknet. By accepting tBTC, Uncap ensures that users can access liquidity while maintaining the sovereign, permissionless nature of their Bitcoin.

Users can deposit tBTC to open a Trove and mint USDU. This enables borrowers to unlock the value of their holdings without relying on centralized intermediaries.

With Uncap's model, the borrower chooses their own interest rate. This creates a market where the cost of borrowing against permissionless Bitcoin is determined by the users themselves.

Why tBTC?​

Bridging Bitcoin to DeFi often requires sending assets to a centralized intermediary in exchange for an IOU. This model introduces trust assumptions and censorship risks.

tBTC offers a different approach. It is a decentralized bridge that replaces centralized intermediaries with a randomly selected group of operators on the Threshold Network.

How it works​

tBTC secures deposited Bitcoin using threshold cryptography and an honest majority assumption:

Decentralized signers: The system requires a threshold majority agreement (51-of-100 signers) before any action can be taken with the deposited Bitcoin.

Operator rotation: The selection of operators rotates bi-weekly to protect against collusion.

Permissionless access: The protocol allows Bitcoin holders open access to DeFi without surrendering custody to a single entity.

tBTC allows Bitcoin to be used in DeFi ecosystems like Uncap while preserving the core properties of the asset: security and censorship resistance. It is the Bitcoin standard for onchain finance.

Do more with your tBTC: https://uncap.finance/