On-chain collateralized stablecoin on Chia
Bytecash (BYC) is a stablecoin pegged 1:1 to the USD.
The stablecoin is issued by Circuit protocol and overcollateralized with XCH.
Borrow
I have XCH and want
to borrow BYC
- Repay anytime
- Up to 60% LTV
- Minimum 100 BYC loan
Earn
I have BYC and want
to earn interest
- Minimum 50 BYC deposit
- Withdraw anytime
- No withdrawal fees
Frequently asked questions
Why is Bytecash needed?
There is currently no stablecoin on Chia, making it difficult to use the blockchain for payments and DeFi applications.
Circuit has opted for an on-chain collateralized approach in order to keep the system open, permissionless and decentralized. This minimizes the risks inherent in stablecoins that are backed by off-chain collateral. An example of this was USDS, a stablecoin backed by
US Dollars held by a custodian, Prime Trust. Despite being regulated, Prime Trust was pushed into receivership due to what appears to be a case of mismanagement of private keys and fraud. This ultimately led to USDS losing its peg, and USDS holders being left out of
pocket.
Circuit on the other hand is completely transparent as everything happens on-chain, enforced by smart contracts. The system is non-custodial, and the only way that collateral can be withdrawn is by Bytecash loans being repaid.
What does testnet11 mean?
It means protocol is still under heavy development and will release multiple iterations of puzzles and tokens before releasing to mainnet. Your previous tokens might not be detected by the app and you'll need to borrow BYC again. You can see which version of token you're using by checking its name: BYC[version]
How does it work?
It’s pretty simple, actually. You lock up XCH as collateral, against which you can borrow BYC. In order for the system to be stable, loans need to be overcollateralized. This ensures that even as the price of XCH fluctuates, there is always more than 1 USD
worth of XCH backing every BYC in circulation.
If you get stuck, check out our Getting Started guide.
Where can I learn more about Circuit protocol?
You can find more info in our litepaper and the documentation.