The Hardest Floor in Stablecoins - Backed by BTC
The public testnet of the Alpen network has launched. Its flagship product will be the Bitcoin Dollar (BTD) – a stablecoin fully backed by Bitcoin.
This isn’t just another crypto‑backed stablecoin. Its design is inspired by the original DAI model, but with key flaws fixed:
- No governance whatsoever – In DAI, everything has always been controlled by MKR token holders: they set interest rates, choose collateral types, and run auctions for risky loans. In other words, when you put money into DAI, you’re entering an ecosystem with a board of directors that can change the rules at any time. With BTD, the rules are set once and for all. No one can alter them.
- No collateral auctions – Instead, there’s a stability pool that instantly repays undercollateralized debt. Auctions in DAI could be slow, giving arbitrage traders the chance to scoop up collateral for pennies. In BTD, the repayment price is locked into the smart contract itself.
- Redeemable for $1 in BTC at any time – Anyone can exchange 1 BTD for exactly $1 worth of the collateral in Bitcoin, at any moment. This creates a hard price floor that prevents the market price from dropping below $1.
And the collateral here is the most battle‑tested crypto in the world. Bitcoin has been declared dead hundreds of times – yet it keeps coming back.
Right now, this is all running on testnet. But if you’re curious to try this model today, check out Liquity USD (LUSD) – it works exactly the same way, except on Ethereum, with ETH as collateral.
You can always swap LUSD on rabbit.io.
