Ducat, a Bitcoin Layer 1 credit protocol, has integrated its infrastructure with the TRON network. This move introduces wUNIT, a TRC-20 wrapped version of the protocol's Bitcoin-backed dollar token, allowing for cross-chain transfers and swaps against USDT.
The protocol operates using non-custodial vaults where users lock Bitcoin to borrow UNIT. It requires a minimum collateralization ratio of 160%. If the ratio drops to 135%, the protocol initiates a liquidation process to secure the system.
Borrowing involves a flat 1% origination fee with no ongoing interest charges. Following the integration, users can swap wUNIT directly for USDT within a dedicated liquidity pool on the TRON network, while the Bitcoin collateral remains on the Bitcoin blockchain.
TRON currently hosts $94 billion in circulating USDT supply. The integration allows Ducat to utilize this infrastructure for its Bitcoin-backed assets, targeting markets where TRON is used for peer-to-peer dollar transfers.
Ducat launched on March 18, 2026. The protocol maintains a 25-percentage-point buffer between its minimum collateralization requirement and the liquidation threshold to manage price volatility.
