The Bitena Solution

The USDb solution relies on Bitena's incremental investment in spot assets of the supporting tokens during the hedged minting period. This provides USDb with the following advantages:

1. Scalability of USDb: Scalability is achieved through the use of derivatives to enhance capital efficiency, allowing for expansion at scale. The use of BTC as collateral, with a perfect hedge against an equivalent nominal short position, enables a 1:1 collateral ratio for the synthetic dollar.

2. Stability of USDb: Stability is ensured by the immediate hedging of transferred assets, maintaining the stability of its synthetic dollar value regardless of market conditions.

3. Censorship-resistance of USDb: This characteristic stems from separating the supporting assets from the banking system and providing a transparent, all-hours auditable, trustless programmatic custodial solution on-chain, keeping assets outside of centralized liquidity.