What is Uncap?

Uncap Finance enables Bitcoin holders to borrow against their assets without selling or relinquishing custody, using deposited WBTC as collateral to mint USDU, a stablecoin pegged 1:1 to USD and backed overcollateralized by Bitcoin.

It operates by allowing users to connect a wallet, deposit WBTC which remains under their control, select a borrow amount based on collateral ratio for low liquidation risk, set a custom interest rate starting from 0.5%, and receive USDU for use in swaps, DeFi deployments, or as a stable holding. Repayment of the loan plus interest retrieves the full collateral, with all processes executed transparently on-chain without rehypothecation or protocol custody.

Users deposit USDU into a stability pool to earn APY from borrower interest payments, ensuring the stablecoin's peg through direct redeemability for equivalent Bitcoin value.