BTCUSD: Bitcoin-Backed Stablecoin

Turn idle Bitcoin into yield-generating stablecoin! Deposit BTC, mint BTCUSD at 150% collateral ratio, earn 8% APY through automated Vesu farming on Starknet's lightning-fast network.

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BTCUSD: Bitcoin-Backed Stablecoin

💡 INSPIRATION

Bitcoin holders face a fundamental dilemma: keep their Bitcoin and earn zero yield, or sell it for yield-bearing assets and lose Bitcoin exposure. With over $1 trillion in Bitcoin sitting idle, we saw an opportunity to solve this with Starknet's ultra-low fees and Bitcoin's emerging DeFi ecosystem.

BTCUSD enables Bitcoin holders to maintain their exposure while earning yield through automated farming on Vesu protocol - turning idle Bitcoin into productive capital.

🎯 WHAT IT DOES

BTCUSD is a Bitcoin-collateralized stablecoin that automatically generates yield:

  1. Deposit Bitcoin → Atomiq bridge converts to wBTC on Starknet
  2. Mint BTCUSD → 66.67% LTV (150% collateral ratio) for safety
  3. Earn Yield → Collateral auto-deposited in Vesu for 8% APY
  4. Harvest Rewards → 70% to users, 30% to protocol sustainability

Key Features:

🔒 Real Bitcoin collateral via Atomiq's trustless bridge
💰 Automatic yield farming on Vesu protocol
⚡ Lightning-fast transactions on Starknet
📱 Mobile-first interface with Braavos integration
🛡️ Overcollateralized design with flash loan liquidations

🏗️ HOW WE BUILT IT

Smart Contracts (Cairo)

5 interconnected contracts power the system:

  • BTCUSDToken - ERC-20 stablecoin with vault-only minting controls
  • BTCUSDVault - Core collateralization logic with 150% minimum ratio
  • YieldManager - Vesu integration with custom lending hooks
  • AtomiqAdapter - Bitcoin bridge monitoring and wBTC management
  • VesuHook - Auto-compounding yield strategies and flash loans

Mobile App (React Native + Expo)

Mobile-optimized interface featuring:

  • Beautiful gradient design with Bitcoin orange branding
  • Braavos wallet integration for Bitcoin support
  • Real-time position monitoring with health indicators
  • One-tap yield harvesting with visual feedback
  • Starknet.js integration for seamless blockchain interaction

Technical Architecture

Bitcoin → Atomiq Bridge → wBTC → BTCUSD Vault → Vesu Yield
   ↓           ↓           ↓          ↓           ↓
User BTC → Trustless → Collateral → Stablecoin → 8% APY

🚧 CHALLENGES WE RAN INTO

  1. Cairo Version Compatibility - OpenZeppelin contracts had breaking changes between versions. Solved by creating simplified, custom implementations.

  2. Mobile Bridge Integration - Connecting Bitcoin wallets to React Native required careful Starknet.js configuration and wallet adapter patterns.

  3. Yield Hook Complexity - Integrating with Vesu's lending hooks while maintaining gas efficiency required custom Cairo implementations.

  4. Liquidation Safety - Designing flash loan liquidations that protect both users and protocol required careful economic modeling.

🏆 ACCOMPLISHMENTS THAT WE'RE PROUD OF

✅ Complete End-to-End System - From Bitcoin deposit to yield harvesting, fully functional
✅ Advanced Cairo Contracts - 5 interconnected smart contracts with proper security
✅ Mobile-First UX - Beautiful, responsive interface optimized for mobile DeFi
✅ Multi-Protocol Integration - Deep integration with Atomiq, Vesu, and Braavos
✅ Prize Strategy - Designed to win $15,000+ across 6 sponsor tracks
✅ Real Utility - Solves genuine problem for $1T Bitcoin ecosystem

📚 WHAT WE LEARNED

  • Starknet Scaling - Experienced firsthand how ultra-low fees enable complex DeFi operations
  • Bitcoin DeFi - Understood the technical challenges of cross-chain Bitcoin integration
  • Mobile DeFi UX - Learned what it takes to make DeFi accessible to mainstream users
  • Cairo Development - Gained expertise in Cairo smart contract patterns and optimization
  • Protocol Integration - Mastered integrating with multiple DeFi protocols simultaneously

🚀 WHAT'S NEXT FOR BTCUSD

Phase 1 (Next 3 months)

  • Mainnet Deployment with security audits
  • Starknet Foundation Grant application
  • Partnership discussions with Atomiq, Vesu, Braavos

Phase 2 (6 months)

  • Multi-asset collateral (ETH, STRK support)
  • Advanced yield strategies (multiple Vesu pools)
  • Mobile app on iOS/Android app stores

Phase 3 (12 months)

  • Cross-chain expansion to Bitcoin L2s
  • Institutional partnerships for large-scale adoption
  • $100M+ TVL target with governance token launch

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