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Ducat, a Bitcoin Layer 1-native credit protocol, has connected its infrastructure to the TRON network, giving its users direct access to the largest USDT settlement layer in crypto. The integration introduces wUNIT, a TRC-20 wrapped version of Ducat’s Bitcoin-backed dollar token, enabling cross-chain transfers and swaps against Tether’s dominant stablecoin.
How the plumbing works
Ducat’s core product lets Bitcoin holders deposit BTC into non-custodial vaults and borrow UNIT, a dollar-pegged token, without handing their keys to anyone.
The protocol requires a 160% minimum collateralization ratio. If a user wants to borrow $100 worth of UNIT, they need at least $160 in Bitcoin locked up. Fall below the 135% liquidation threshold and the protocol starts unwinding the position to protect the system.
Borrowing carries a 1% origination fee with no ongoing interest. That’s a notable departure from most lending protocols, which charge variable rates that can spike during volatile markets.
With the TRON integration, the newly created wUNIT token can be swapped directly against USDT inside a dedicated liquidity pool on the TRON network. Bitcoin collateral stays on the Bitcoin network the entire time. Only the dollar-denominated token crosses chains, which keeps the security model intact while expanding where that liquidity can actually be used.
Liquidity providers who supply USDT and wUNIT to the pool earn swap fees, creating a straightforward incentive structure.
Why TRON specifically
TRON has quietly become the backbone of stablecoin transfers globally. Its low fees and fast confirmation times made it the default rail for peer-to-peer dollar transfers, particularly in emerging markets across Asia, Africa, and Latin America.
That $94 billion USDT figure represents actual circulating supply on TRON, making TRC-20 USDT the single largest stablecoin deployment on any network. For Ducat, integrating with TRON means its Bitcoin-backed dollar token can flow through channels where real commercial activity already happens.
The broader Bitcoin DeFi context
Ducat launched on March 18, 2026, entering a Bitcoin DeFi landscape that has matured significantly over the past two years.
The non-custodial vault structure addresses one of the oldest tensions in crypto lending. Centralized lenders like Celsius and BlockFi collapsed spectacularly because they took custody of user funds and made risky bets with them. Ducat’s architecture sidesteps that risk entirely by keeping Bitcoin in vaults that borrowers control.
The 160% collateralization requirement provides a meaningful buffer against Bitcoin’s price volatility. For context, MakerDAO historically required 150% collateralization for ETH vaults on Ethereum. Ducat’s slightly higher threshold, combined with the 135% liquidation trigger, builds in a 25-percentage-point cushion between the minimum and the danger zone.
The zero-interest model funded by a flat 1% origination fee makes costs predictable for borrowers. You know exactly what you’re paying upfront, with no surprises if your loan sits open for months.
For TRON, the integration adds a new flavor of collateralized stablecoin to its ecosystem. While USDT dominates on the network, the introduction of a Bitcoin-backed dollar token gives TRON users exposure to a fundamentally different type of stablecoin, one backed by the most liquid crypto asset rather than by fiat reserves held in bank accounts.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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