Question 1

Where does the yield come from?

Accepted Answer

sBTCD earns yield from 3 different sources. It holds yield bearing stablecoins in the USD Sleeve, yield bearing BTC positions in the BTC Sleeve, and it earns yield by constantly buying low and selling high in the rebalancing engine.

Question 2

What is sBTCD?

Accepted Answer

sBTCD is BTCD (Bitcoin Dollar) that has been staked to earn yield. Its value grows over time as protocol yield accrues. Both vaults use sBTCD as their yield engine — you don’t need to stake anything yourself, the vault handles it for you.

Question 3

What happens if BTC crashes?

Accepted Answer

BTCD is designed to move at half the volatility of BTC. If BTC falls 10%, BTCD would fall 5%. The USD Vault holds delta-neutral exposure because the BTC within sBTCD is offset by the BTC debt in the vault. The BTC Vault is designed to track BTC price so if Bitcoin rises or falls 10%, the BTC Vault position will also rise or fall 10%.

Question 4

How is this different from sUSDe?

Accepted Answer

BTCD and sBTCD share the same token design as Ethena's USDE and sUSDE. In both cases, there is the base asset that holds the peg and the staked asset that accrues yield earned by the protocol's strategy. While USDE is pegged to $1, BTCD is pegged to a constantly rebalancing 50/50 portfolio similar to a Uniswap V2 BTC/USD position.

Question 5

What is TRD, and does it affect me?

Accepted Answer

TRD (Temporary Redemption Discount) is a penalty that can hit people who hold ybBTC directly and try to exit at the wrong time. Bitcoin Dollar hedges it at the protocol level, so vault depositors don’t pay it individually. Short answer: no, it doesn’t affect you directly.

Question 6

Is it safe to deposit USDC in a DeFi vault?

Accepted Answer

DeFi vaults carry inherent risks including smart contract vulnerabilities, oracle failures, and market volatility. Bitcoin Dollar mitigates these through independent smart contract audits, non-custodial architecture, automated risk management, and transparent on-chain operations. However, DeFi deposits are not insured by any government agency — always do your own due diligence and risk management.

Question 7

How do I deposit and withdraw from a vault?

Accepted Answer

Connect an Ethereum wallet (MetaMask, WalletConnect, Coinbase Wallet), navigate to the vault, and deposit any amount of USDC. Withdrawals are available anytime — either instantly if vault liquidity is sufficient, or via a scheduled withdrawal that processes within a few days. There are no lockup periods or exit penalties.

Feature	Traditional Savings	BTCD Yield Vaults
USD Vault APY	0.5–5%	~12% (USD-denom.)
BTC Vault APY	<1%	~6–8% (BTC-denom.)
Strategy	Various	Leveraged sBTCD
Custody	Bank holds your funds	Self-custody — your keys, your crypto
Transparency	Quarterly statements	Real-time on-chain verification
Withdrawal	Business days, potential penalties	Anytime — instant or scheduled
Minimum Deposit	Often $500–$10,000+	No minimum

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BTC Vault

Why Bitcoin Dollar Vaults

Automated Yield Strategies

Institutional-Grade Risk Management

Vault Strategies Explained

USDC Vault

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DeFi Yield vs Traditional Savings

Security & Trust

Smart Contract Audits

Non-Custodial

Risk Disclosures

Frequently Asked Questions