Uncap

USDU is a collateralized debt position (CDP) stablecoin that unlocks Bitcoin’s liquidity. Users deposit BTC collateral and mint USDU at self-determined interest rates, creating a flexible borrowing system inspired by Liquity v2 but adapted for Bitcoin-derived assets.

The protocol maintains its $1 peg through direct redemptions: 1 USDU is always redeemable for $1 worth of BTC. A stability pool manages liquidations with a 5% bonus, while borrowing fees are distributed 75% to stability pool depositors and 25% to Protocol Incentivized Liquidity.