Bitcoin-backed UNIT Token Connects with Tron USDT Liquidity

Ducat has announced the introduction of wUNIT, a wrapped token on the Tron network, which will connect Bitcoin (BTC)-backed dollar-pegged tokens UNIT with Tron-based Tether (USDT) liquidity. Ducat revealed that wUNIT, issued as a TRC-20 token, is designed to allow exchange with Tether in dedicated liquidity pools.

Users can hold or convert wUNIT into Tether, while liquidity providers can deposit both assets into the pool to earn a portion of trading fees. Ducat clarified that UNIT issuance and BTC collateral management will remain on the Bitcoin network, with only wUNIT moving to Tron. The Bitcoin network will handle collateral and issuance, Ducat manages credit and currency logic, and Tron handles payments and liquidity movement.

Tron DAO Community Representative Sam Elfarra stated that Tron users gain access to another digital dollar while Bitcoin holders can leverage liquidity across networks. The announcement noted over $94 billion (approximately 12.878 trillion won) of Tether is circulating on Tron, though the exact date and calculation method were not specified.

Ducat's structure involves depositing Bitcoin into a 2-of-2 taproot vault to borrow UNIT tokens, with minimum collateral ratio at 160%, liquidation threshold at 135%, zero ongoing interest rate, and a one-time minting fee of 7%. The company emphasizes that collateral supports loans while liquidity refers to the ability to buy or sell tokens.

Tron is known for concentrated Tether trading, with reports indicating over 9.12 billion Tethers on its network. While Crypto Briefing mentions a 1% loan fee, Ducat's official site lists it at 7%, and it remains unclear which figure applies upon Tron integration.

Ducat claims no external bridges or custodians are used, but the announcement assumes wUNIT moving to Tron via bridge operations. The company's app shows 'Mainnet Alpha' and 'Ducat v3,' while GitHub indicates wallet integration with Bitcoin Mutinynet testnet and TRC-20 features on Sepolia test environment.

The announcement appears to be an early step in the Tron integration plan, as no public data confirms wUNIT's mainnet deployment or actual Tether pool operations. Ducat plans to proceed with wUNIT deployment and liquidity management, though specific timelines for mainnet launch and trading commencement remain undisclosed.