I’m pleased to announce the public, testnet release of Ducat’s Liquidations v1, the key feature of our Bitcoin-native stablecoin protocol! (link below) Why it matters Ducat was founded by @dav1dbtc, @zk_bits and me a year and a half ago with one mission: building a Bitcoin-native, BTC-backed stablecoin primitive to power Bitcoin DeFi’s app layer without the custody risk of a centralized L2 or bridge to an EVM network. A key part of a decentralized stablecoin is making sure that it’s adequately collateralized at the protocol level at all times. If the price of Bitcoin falls a lot, there needs to be an incentive for outside capital to come in and recapitalize defaulted vaults on the Protocol. That’s what Liquidations are designed to accomplish. Liquidations are the critical feature by which you, or anyone else, can recapitalize a Bitcoin vault whose collateralization has fallen below an unsafe level (135%), and earn a return on your Bitcoin capital in the process (initially targeted...
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