Borrow Stables Against Native BTC
Real BTC as collateral; loan proceeds on Ethereum or Base. Rujira Money Market accepts native Bitcoin directly — no WBTC mint, no federation, no CEX margin desk in the path.
The wrapper-free collateral path
The usual DeFi answer for "borrow stables against BTC" is: mint WBTC, deposit into an EVM money market, borrow stables, done. That introduces two dependencies — the WBTC custodian on one side of the lien, and the wrapper-to-unwrap round-trip if you ever want the BTC back. Rujira Money Market skips both: native BTC sits as on-chain collateral; the loan arrives where your EVM stack already lives.
- Native BTC as collateral — real Bitcoin, on the Bitcoin chain, for the life of the loan.
- Loan proceeds on your EVM address — Ethereum or Base. Immediately composable with the rest of your stack.
- Non-custodial — the protocol, not a company, holds the lien against your address.
Step-by-step: BTC collateral, stable loan on EVM
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Open Rujira Money Market
The Money Market is a Rujira app-layer product on THORChain that accepts native BTC as collateral. Your BTC stays on the Bitcoin chain for the life of the loan; no ERC-20 receipt is minted at any step.
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Deposit native BTC as collateral
Send BTC from a Bitcoin-capable wallet (Sparrow, Electrum, hardware-via-Sparrow, or any BTC wallet that can attach an OP_RETURN memo) to the inbound address shown by the Money Market. The memo records the deposit as collateral against your nominated destination address.
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Specify the EVM destination for the stable loan
The destination for the loan proceeds is an EVM address you control — on Ethereum or Base, whichever you prefer for the rest of your DeFi stack. The Money Market supports multiple output chains; pick the one where your composability lives.
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Choose the stablecoin and borrow amount
Pick USDC (or any supported stable) and a borrow amount within the allowed loan-to-value. The interface displays max LTV, liquidation threshold, borrow rate, and your liquidation price before you sign.
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Confirm the borrow
Rujira observes the BTC deposit, opens the position, and sends the stablecoin loan to your EVM address. From the EVM side this looks like an incoming ERC-20 transfer — the stable is immediately usable in any Ethereum or Base protocol.
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Monitor collateral health
Watch BTC price vs. your liquidation threshold. Top up collateral or repay debt any time to reduce the position. Liquidation parameters are on-chain; the UI shows distance-to-liquidation live.
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Repay to unlock your BTC
Send stablecoins back with the repay memo. Once the debt is cleared, Rujira releases your native BTC to the Bitcoin address you nominate. No wrapping, no bridging, no custodian handoff.
Risks to understand before you borrow
If BTC falls enough that your collateral ratio breaches the threshold, part of your BTC is sold to repay the loan. Borrow conservatively and leave volatility headroom.
Stablecoin borrow rates are algorithmic and move with utilization. Check the live rate before opening a position; they can rise during periods of high demand.
Non-custodial does not mean risk-free. The Money Market runs on deployed contracts; bugs or exploits could affect deposits. Size positions to the risk you can carry.
Other native-BTC DeFi moves
EVM-user borrow questions
Why not mint WBTC and borrow on Aave?
You can, and for positions that compose with the rest of your EVM strategy, that is often the right answer. The tradeoff is the wrapper: the BTC is held by BitGo's federation while your WBTC sits in Aave's collateral pool. Rujira Money Market removes that layer — the collateral is the real BTC, held by the protocol as a native-settlement position. Pick based on whether wrapper-removal matters for this particular BTC balance.
Does the loan land as USDC on Ethereum specifically?
The Money Market lets you specify the destination chain and asset within the chains and assets it supports. USDC on Ethereum is a common default; USDC on Base is also supported where THORChain's routing includes it. The loan settles on the chain you choose — no separate bridge hop required from the borrow side.
What LTV can I get on native BTC?
LTV is set per-collateral by the protocol and adjusts with market conditions. The current max, the liquidation threshold, and your personal liquidation price are all displayed in the UI before you confirm. Conservative borrowers typically open positions well below the maximum to leave headroom for volatility.
What happens at liquidation?
If BTC falls enough that your collateral ratio breaches the threshold, part of your BTC is liquidated to repay the loan. The mechanic is standard money-market liquidation — the difference is that the collateral being sold is native BTC on the Bitcoin chain, not a wrapped version. The effect on your position is the same; the thing being sold is different.
Is there a term or repayment schedule?
No term lock. Open a loan, repay any time — including immediately — close it out whenever. The only cost is the accrued interest at the moment of repayment. The borrow rate is algorithmic; current figures are live in the UI.
Can I borrow against BTC I do not yet hold on the Bitcoin chain?
The collateral has to be native BTC. If your BTC exposure is currently WBTC, the practical path is: redeem or swap the WBTC back to real BTC first, then use it as collateral. If you have never held BTC on the Bitcoin chain, the ETH → native BTC swap (covered in a sibling guide) is the first step.