Circuit Protocol is a non‑custodial DeFi platform on the Chia blockchain that lets XCH holders mint BYC, a dollar‑pegged stablecoin, by locking XCH as over‑collateralized debt. BYC can be deposited into a Savings contract where borrower fees are continuously redistributed as yield, creating demand for the stablecoin and maintaining its peg. The protocol uses audited, immutable smart‑coin contracts and an automated liquidation system to ensure security and stability without centralized control.
Funding
Funding not disclosed
Founders
Product
Problem
Chia users lack native, decentralized ways to unlock liquidity from their XCH holdings without selling, and there are limited options for earning yield on stablecoins within the Chia ecosystem.
Solution
Circuit Protocol provides a non‑custodial DeFi platform on the Chia blockchain that lets users deposit XCH as collateral to mint BYC, a dollar‑pegged stablecoin. The protocol uses a collateralized debt position (CDP) model adapted from MakerDAO, ensuring over‑collateralization and automated liquidations to maintain the peg without centralized control. BYC holders can deposit the stablecoin into a Savings contract, where borrower fees are redistributed as continuous yield, creating demand for BYC and reinforcing its stability. The system is open‑source, audited, and operates with immutable smart‑coin contracts, offering transparent analytics and on‑chain governance. Users retain full ownership of their XCH collateral and can withdraw or repay at any time, while third‑party keepers can profit from liquidations, further securing the protocol.
Target Audience
Primary users are XCH holders seeking liquidity without selling, and DeFi participants who want to earn yield on a stablecoin native to the Chia network.
Features
- Mint BYC by locking XCH in independent vaults (CDPs) with configurable over‑collateralization ratios
- Variable stability fee charged on generated debt, automatically collected and redistributed to savers
- Savings contract that removes BYC from circulation, generating continuous yield from borrower fees
- Automated, profit‑incentivized liquidation mechanism that protects the protocol against under‑collateralized positions
- Non‑custodial architecture with immutable smart‑coin contracts audited for security
- Real‑time on‑chain analytics dashboard and open‑source documentation for transparency