bfUSD Overview
Introduction
bfUSD (BitFi USD) is a collateralized stablecoin minted against USDT or USDC. Instead of remaining idle, minted bfUSD can be staked into dual ERC-4626 vaults to share protocol revenue, insurance-buffer distributions, and boosted yields.
Dual Yield Model
Horizon bfUSD (hbfUSD): A low-risk, delta-neutral vault designed for smooth, non-drawdown ratio growth. Its supply is capped at 100 million shares to control risk.
Pulsar bfUSD (pbfUSD): A higher-risk, higher-yield vault with a 2 million share cap that can experience drawdowns between epochs.
hbfUSD and pbfUSD share a coordinated risk perimeter: part of Horizon's revenue is used to boost Pulsar, while Pulsar's capital (together with a protocol buffer) helps protect Horizon when markets are stressed.
Redemption Flexibility
bfUSD supports both standard redemptions (3-epoch wait plus manual claim, zero fees) and instant redemptions (0.5% fee, quota-limited). Redeemer contracts currently release USDT on Ethereum, providing liquidity while helping maintain the peg.
Technical Footprint
ERC-4626 compatible: Both vaults implement the vault standard, exposing
previewDeposit,previewWithdraw,convertToShares, andconvertToAssetshelpers.Chainlink pricing: Stablecoin prices are sourced from Chainlink oracles before conversion.
LayerZero aware: Deposits, withdrawals, and share transfers can cross chains via LayerZero helpers (e.g.,
send,quoteSend).Insurance buffers: Multiple vaults, an on-chain buffer, and a project-funded insurance pool help keep hbfUSD stable even when Pulsar trades sharply.
Deployment Status
Mainnet: Deployed on Ethereum; see the deployed-contracts page for contract addresses.
Testnet: Deployed on Base Sepolia (ChainId 84532) for testing.
Contract code: The contracts are verified on Etherscan to support independent review.
Last updated