LBTC: Bitcoin-pegged token on Stacks

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:

  1. Opens up the function of STSW tokens as collateral tokens.
  2. BTC price tracking to create arbitrage trading demand.
  3. Create even more trade options on Stackswap by combining LBTC for a variety of trading pairs.

How do I issue (or loan) LBTC?

  1. Obtain STX tokens, transfer to your wallet, and visit app.stackswap.org.
  2. Obtain STSW tokens using the Stackswap Swap function.
  3. Mint LBTC with STSW tokens as collateral with the Stackswap Vault function. (Minimum debt ratios options are 200% and 225%)

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.

Timeline Notes

  • 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.

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