LBTC: Bitcoin-pegged token on Stacks
Announcing some exciting news!
Introducing LBTC, a BTC-pegged token, based on STSW or STX as collateral. The LBTC Vault feature will now be open for users.
What is LBTC?
LBTC is a BTC-pegged token issued with the Stackswap token (STSW) or Stacks token (STX) as collateral. This token takes on the same value as BTC on the Stacks network, and forms a stable, transparent price feed through an external oracle.
What’s so special about LBTC?
LBTC brings several features and options to the Stacks ecosystem:
- Supplies BTC liquidity to the Stacks ecosystem.
- Opens up the function of STSW tokens as collateral tokens.
- BTC price tracking to create arbitrage trading demand.
- Create even more trade options on Stackswap by combining LBTC for a variety of trading pairs.
How do I issue (or loan) LBTC?
How do I liquidate my position (repay loans)?
In the case that the margin set (in STSW) is exceeded, the liquidation process is automatically triggered. When this happens, the user’s vault is automatically closed, and additional deposits or withdrawals are not allowed.
To minimize risk of liquidation, users can deposit additional collateral STSW tokens before the liquidation ratio is exceeded.
In the case that liquidation is not triggered:
- Users can request repayment with STSW corresponding to the issued* value of LBTC**. This liquidation can be triggered by the user at any time.
* loan amount at time of issuance
** debt ratio applied at time of issuance
- Direct STX collateral is coming soon
- More tokens will be supported eventually
- Vault is open and under testing, with an audit report drafted and full report to be finalized by external auditors.
Further details and user guide for the Stackswap Vault function will be published soon.