Elastos Launches BTCD – a Bitcoin-Backed Stablecoin
23.06.2025
BTCFi platform Elastos has introduced BTCD, a stablecoin backed by bitcoin. Unlike most stablecoins pegged to the US dollar and secured by fiat or government bonds, BTCD relies on the leading cryptocurrency — BTC.The project draws inspiration from the Bretton Woods agreement, which cemented the dollar’s dominance in the mid-20th century, but reimagines it with bitcoin as the core asset.To mitigate volatility, Elastos employs overcollateralization: each BTCD is backed by BTC worth 160% to 200% of its value. Bitcoin’s price is updated in each block via oracles. If the coverage drops to 110%, arbitrageurs can redeem BTCD and buy BTC at a slight discount, helping maintain system stability.The algorithm adjusts BTCD supply through issuance and burning based on market demand, making the model self-balancing.Interest in the BTCFi sector is growing: total value locked in bitcoin-based applications has exceeded $6.4 billion, ranking just behind Ethereum and Solana ecosystems, according to DeFi Llama. The largest project remains Babylon Protocol with $4.9 billion in TVL.
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