Uncap Finance is a decentralized lending protocol that lets Bitcoin holders borrow against their BTC at interest rates as low as 0.5%, the cheapest in DeFi. Users deposit WBTC as collateral, set their own interest rate, and mint USDU, a Bitcoin-backed stablecoin that is uncensorable and always redeemable 1:1 for $1 of Bitcoin. The protocol is fully non-custodial, audited by ChainSecurity, and built on Starknet.
Funding
Funding not disclosed
Founders
Product
Problem
Bitcoin holders face a difficult choice: sell their Bitcoin and lose upside potential, let their capital sit idle, or give up custody to borrow against it. Traditional lending platforms require handing over control of assets, while stablecoins like USDC and USDT are subject to freezing, blacklisting, and centralized control.
Solution
Uncap Finance enables Bitcoin holders to borrow against their BTC without giving up custody or control. Users deposit WBTC as collateral and mint USDU, a stablecoin backed by over $1 of Bitcoin for every USDU in circulation, ensuring a hard peg to the US dollar. Borrowers set their own interest rate starting at 0.5%, the lowest in DeFi, and can repay anytime to reclaim their Bitcoin. USDU is uncensorable—no blacklists, no admin keys, no centralized control—and can always be redeemed directly from the protocol for $1 worth of Bitcoin. The platform is fully transparent, open source, and audited by ChainSecurity, with no rehypothecation of deposited collateral. Depositors can also earn yield by supplying USDU to the Stability Pool, which generates sustainable APY from borrower interest.
Target Audience
Primary users are Bitcoin holders seeking low-cost, non-custodial liquidity without selling their BTC, as well as DeFi users looking for a censorship-resistant, Bitcoin-backed stablecoin to hold or deploy for yield.
Features
- Non-custodial borrowing: users retain full ownership and control of their Bitcoin, with no rehypothecation or lending out of collateral
- User-set interest rates from 0.5%, enabling the lowest-cost borrowing in DeFi
- USDU stablecoin: overcollateralized by Bitcoin, hard-pegged 1:1 to USD, and always redeemable for $1 of BTC directly from the protocol
- Censorship-resistant stablecoin with no blacklists, admin keys, or centralized control, unlike USDC or USDT
- Stability Pool that lets depositors earn real yield from borrower interest, driven by actual economic activity
- Built on Starknet for scalability and low transaction costs, with full transparency and open-source code audited by ChainSecurity