Borrow Stables Against Native BTC
Unlock stablecoin liquidity without minting WBTC and without sending Bitcoin to a CEX margin desk. Rujira Money Market accepts native BTC as collateral directly on THORChain — non-custodial, no wrapper, no term lock.
Why this is different from WBTC lending
The usual way to borrow stables against BTC inside DeFi is to mint WBTC and deposit it into an EVM lending protocol. That adds the wrapper step to your risk stack: the BTC lives with a federated custodian, and the ERC-20 receipt lives on Ethereum. Rujira removes both layers — the collateral is native BTC on the Bitcoin chain.
- Native BTC as collateral — your Bitcoin stays on its own chain for the life of the loan; no WBTC is minted.
- Non-custodial — the protocol, not a company, holds the lien against your address.
- No term lock — open a loan, repay any time, close it out.
- Transparent parameters — LTV, liquidation threshold, and borrow rate are published on-chain and visible before you sign.
Step-by-step: deposit BTC, borrow stables
-
Open Rujira Money Market
Navigate to the Rujira Money Market app. It runs on top of THORChain and supports native BTC as collateral — your Bitcoin stays on the Bitcoin chain for the life of the loan. No WBTC is minted at any step.
-
Connect a BTC-capable wallet
Use a Bitcoin wallet that can sign standard BTC sends with an OP_RETURN memo. THORChain-compatible wallets route the deposit automatically. Sparrow, Electrum, and BTC-compatible hardware wallets all work.
-
Deposit native BTC as collateral
Send BTC to the inbound address shown by the Money Market, with the deposit memo in OP_RETURN. The protocol records the BTC as collateral against your destination address; re-hypothecation is not part of the design.
-
Choose the stablecoin and borrow amount
Pick the stable (e.g. USDC) and an amount within the allowed loan-to-value. The interface shows the current max LTV, the liquidation threshold, and your liquidation price before you sign.
-
Sign the borrow transaction
Confirm the borrow. Stablecoins are sent to the destination address you specify. It can be the same wallet, a different wallet, or a CEX deposit address if you are off-ramping the loan proceeds.
-
Monitor collateral health
Watch BTC price vs. your liquidation threshold. You can repay part or all of the loan any time to reduce the position, or top up BTC collateral if price falls. The protocol publishes liquidation parameters on-chain.
-
Repay to unlock your BTC
Send stablecoins back with the repay memo. Once the debt is cleared, the protocol releases your native BTC to the Bitcoin address you nominate. No wrapping step; no custodian handoff.
Risks to understand before you borrow
If BTC falls enough that your collateral ratio breaches the liquidation threshold, part of your BTC is sold to repay the loan. Borrow conservatively — leave headroom for volatility.
The stablecoin borrow rate is algorithmic and moves with utilization in each market. It can rise during periods of high demand. Check the live rate before opening a position.
Non-custodial does not mean risk-free. The Money Market runs on deployed contracts; a bug or exploit could affect deposits. Size positions to the risk you can carry.
Other things you can do with native BTC
BTC money-market questions
Is my BTC ever wrapped to WBTC?
No. Rujira Money Market treats native BTC as first-class collateral on THORChain. Your BTC stays on the Bitcoin chain for the life of the loan; the protocol records the lien on-chain against your address. No ERC-20 BTC receipt is minted, held, or transferred at any step.
What loan-to-value (LTV) can I get on BTC?
LTV is set per-collateral by the protocol and adjusts with BTC market conditions. The Money Market interface displays the current maximum LTV, the liquidation threshold, and your liquidation price before you confirm. Conservative borrowers typically open loans well below the maximum to leave headroom for volatility.
What happens if BTC price drops?
If your collateral ratio falls below the liquidation threshold, part of your BTC is liquidated to repay the loan and keep the position solvent. You can avoid this by repaying debt early or topping up collateral. Liquidation parameters are published on-chain; you can check your distance to liquidation in the UI at any time.
What is the borrow rate?
The stablecoin borrow rate is set algorithmically from utilization in each market. Current rates are shown live in the Money Market UI. There is no origination fee and no term lock — you can repay any time, including immediately, and the only cost is the accrued interest up to that moment.
Why not just mint WBTC and borrow on Aave?
You can. The tradeoff is that you add the WBTC custody layer to your risk stack: the BTC now sits with a federated custodian instead of on the Bitcoin chain. Rujira Money Market removes that layer — the collateral is the real BTC, held by the protocol as a native position. Pick the shape of risk you prefer.
Is this custodial?
No. Rujira Money Market is non-custodial: the BTC is held by the protocol on-chain against your address, not by a company. There is no operator who can freeze, withdraw, or re-lend your collateral. The counterparty is the protocol's contract code and signing-set — not a corporate balance sheet.