# bfUSD > bfUSD is BitFi's yield-bearing stablecoin backed by USDT and USDC. ## Overview bfUSD is minted on Ethereum by depositing USDT or USDC into BitFi's stablecoin contracts. Pricing is secured by Chainlink oracles, and the resulting bfUSD token is an ERC-20 asset that can move between BitFi and external DeFi protocols. ## Horizon and Pulsar bfUSD supports two ERC-4626 vaults with different risk profiles: * **Horizon (hbfUSD):** Low-risk, delta-neutral vault with a steadily increasing share price and a supply cap of 100 million shares. * **Pulsar (pbfUSD):** Higher-risk, higher-yield vault with a 2 million share cap that can experience drawdowns between epochs. Horizon and Pulsar are linked by design: part of Horizon's revenue is used to boost Pulsar, and Pulsar's capital helps protect Horizon during stress events. ## Insurance and Integrations A protocol buffer, together with Pulsar's capital, is used to absorb losses before they impact Horizon depositors. All contracts are available via verified ABIs, and LayerZero helpers (send, quoteSend) support cross-chain transfers of bfUSD, hbfUSD, and pbfUSD. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://bitfi-2.gitbook.io/bitfi/bitfis-cedefi/images-and-media/bfusd.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.