❓ CoUSD FAQs
Q: What is CoUSD?
A: CoUSD is a Bitcoin-backed synthetic USD stable asset. It allows you to mint USD-denominated liquidity from your Bitcoin holdings — without selling your BTC.
Q: How is CoUSD different from traditional stablecoins?
A: Unlike fiat-backed stablecoins like USDC or USDT, CoUSD is not backed by fiat or bank reserves. It’s fully collateralized with native Bitcoin, offering a decentralized and censorship-resistant alternative.
Q: Do I have to sell my Bitcoin to mint CoUSD?
A: No. CoUSD allows you to retain ownership of your BTC. Your Bitcoin is locked in a multi-signature vault, and you mint CoUSD as a loan against it.
Q: What’s the difference between No-Liquidation and Liquidatable Vaults?
A:
- No-Liquidation Vault: Fixed lock period, auto-repayment, no risk of liquidation.
- Liquidatable Vault: Flexible term, but subject to collateral ratio monitoring and possible liquidation.
Q: What happens if the BTC price drops?
A: If you're using a Liquidatable Vault and your collateral ratio falls below the required loan-to-value (LTV) threshold, your position may be liquidated. To avoid this, you can repay or top up your collateral.
Q: Can I redeem my BTC at any time?
A: Yes. Simply repay your CoUSD debt (fully or partially) to unlock and withdraw your BTC.
Q: Are there any interest charges or fees?
A: There is no ongoing interest. A one-time minting/burning fee applies when you generate or repay CoUSD. You only pay this once per minting session or burning session.
Q: Is CoUSD audited and secure?
A: Yes. CoUSD is built on audited smart contracts and uses a 2-of-3 multi-sig custody model for BTC security. Collateral and supply are fully transparent and verifiable on-chain.
Q: Who should use CoUSD?
A:
- Bitcoin holders who want liquidity without selling
- Miners looking to fund operations
- DeFi users wanting BTC-native exposure
- Institutions managing BTC treasuries
Q: How do I mint CoUSD?
A: Just follow the simple 5 steps:
- Connect your Bitcoin compatible wallet
- Lock Bitcoin into a secure multi-sig vault or custodian
- Choose a vault type (No-Liquidation or Liquidatable)
- Mint CoUSD based on your chosen LTV ratio
- Use CoUSD across DeFi platforms
Q: What can I do with CoUSD after minting it?
A: You can use CoUSD to:
- Provide liquidity in DeFi pools
- Stake or lend for yield
- Loop into more BTC positions
- Use in future CeFi and RWA integrations
Q: What are the risks?
A:
With Liquidatable vault:
- BTC price volatility may lead to liquidation.
- Always monitor your collateral ratio and keep a safe buffer to avoid liquidation.
- Smart contract and custody risks are minimized through audits and multi-sig architecture, but cannot be entirely eliminated.
With No-Liquidatable vault:
- Staking rewards are not fixed. Yields can vary based on market conditions, TVL allocation, protocol revenue, and DeFi or CeFi performance