> For the complete documentation index, see [llms.txt](https://bitprotocol.gitbook.io/bitprotocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitprotocol.gitbook.io/bitprotocol/bit-protocol/usdbitusd.md).

# $BitUSD

**The Problem:**

<figure><img src="/files/PCtBNw6A0ARMASmDe8OL" alt=""><figcaption></figcaption></figure>

Most stablecoins are centralized, opaque, or limited to “blue-chip” collateral. Want to borrow against your LST, project tokens or AI agent token?&#x20;

**Our Solution**

<figure><img src="/files/c9k5zXstz8M74iRiFNAH" alt=""><figcaption></figcaption></figure>

$BitUSD isn’t just decentralized—it’s democratized. Imagine a vault that accepts anything valuable:

* Traditional Collateral: LSTs, ETH, BTC.
* RWAs: Short-term T-Bills, Gold/Silver, Uranium
* Chain-Agnostic: Deposit and Borrow on the chain of your choice.

**But, How It Stays Stable?**

<figure><img src="/files/Mh8tEo24AnO5StTLfbL8" alt=""><figcaption></figcaption></figure>

* **CDP-Enforced Overcollateralization:** Every 1 of BitUSD is backed by more amount in collateral sum (adjustable per asset).
* **Decentralized Governance:** BIT token holders vote on collateral tiers, fees, and risk parameters—no shadowy committees.
* **Safety Nets:** Backstop Liquidity Pools (like AAVE’s Safety Module) absorb losses if a collateral crashes.
* **Onchain Insurance** generates an additional risk layer that incentivize users to earn from the coverage provided.<br>