> For the complete documentation index, see [llms.txt](https://docs.btcd.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.btcd.fi/opportunities/usd-growth.md).

# USD Growth: the USD Vault (bdUSD)

Deposit USDC into the USD Vault (bdUSD) and earn in dollars.

The USD Vault has run on IPOR Fusion since April 2026. Its mechanics are described below.

## What you deposit

USDC. You receive bdUSD, which represents your share of the USD Vault. Deposit through the [IPOR app](https://app.ipor.io/fusion/ethereum/0xf8f226da66244f89e70c5b5d1a5c5b0d505eb1d8).

## How it works

1. The vault uses your USDC to buy sBTCD.
2. It posts the sBTCD in the isolated sBTCD/wBTC Morpho market and borrows wBTC at a 50% LTV target.
3. The borrowed wBTC is swapped into more sBTCD.

The result is 2× sBTCD against 1× wBTC debt for every dollar deposited. BTCD is about half bitcoin, so the wBTC debt offsets the bitcoin half of the sBTCD collateral and the vault's BTC exposure nets to zero. bdUSD moves with BTCD's yield, not with the bitcoin price.

Net yield = 2 × sBTCD yield − wBTC borrow rate − costs.

## Rebalancing

The vault holds its LTV in a tight band around 50%.

* **When bitcoin rises,** the wBTC debt grows in dollar terms and the LTV rises. The vault deleverages: it sells sBTCD, acquires wBTC and repays debt.
* **When bitcoin falls,** the wBTC debt shrinks in dollar terms and the LTV falls. The vault re-leverages: it borrows more wBTC and converts it into sBTCD.

The Morpho market liquidates at 77% LTV.

## What you are exposed to

* **The BTCD Portfolio.** sBTCD's value and yield come from the reserves behind BTCD. A 1% loss in the portfolio moves bdUSD about 2%, and gains work the same way.
* **The wBTC borrow rate.** Each point the borrow rate rises takes a point off the yield.
* **Fast bitcoin rallies.** Liquidation risk concentrates in rallies that outpace the vault's deleveraging.
* **Smart contracts** across the vault (IPOR Fusion), Morpho and the BTCD protocol.

## Getting out

The contract exposes two exit routes. Their configuration was checked on 2 November 2026, blocks 26,327,908–26,328,094.

* **Immediate withdrawal or redemption.** Paid from available liquid capacity. The configured instant path converts the vault's sUSDS buffer back to USDC through the LitePSM; it does not let a holder unwind the leveraged Morpho position in the same call. The immediate-exit fee was 0.2%.
* **Request then claim.** The holder calls `requestShares` on the withdraw manager and pays a 0.2% request fee up front. The operator makes funds available and releases eligibility; the holder then calls `redeemFromRequest`. The claim does not charge a second exit fee.

The configured request window was 24 hours. Its deadline is stored when the request is submitted, not when funds are released. Claiming requires eligible released funds and must occur before that stored deadline. Operator servicing time and expired-request handling are separate from the contract window.

At the dated observation, immediately available USDC capacity was about 10.1% of vault assets. This balance changes with deposits, withdrawals and allocations; it is not a fixed withdrawal allowance or per-block throughput.

The contract's user functions were public, with no vault whitelist. A one-second delay applies to withdrawal, redemption and transfer after a deposit. Frontend regional access, the interface's request/claim support and third-party wrapper rules are separate from these contract permissions.

## Fees

The published schedule lists a 0.5% a year management fee, no performance fee and no deposit fee. The 2 November 2026 exit settings were 0.2% for immediate withdrawal or an upfront 0.2% request fee, with no second fee on the claim. See [Fees](/opportunities/fees.md).

## Capacity

The vault has an operator-set supply cap. Deposits are also limited by available strategy and borrowing capacity. At block 26,327,908 on 2 November 2026, the cap was above the outstanding share supply; that headroom is a dated observation, not unlimited capacity. The wBTC liquidity in [BTC Prime](/opportunities/btc-prime.md) remains part of the strategy's capacity.

## Contracts

| Contract                   | Address                                                                                                                                    |
| -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ |
| bdUSD (USD Vault)          | [0xF8F226dA66244F89e70C5B5D1a5C5b0d505Eb1d8](https://etherscan.io/address/0xF8F226dA66244F89e70C5B5D1a5C5b0d505Eb1d8)                      |
| sBTCD                      | [0x3BC801419479865B24b4d32faB0Bf64638Abbd5f](https://etherscan.io/address/0x3BC801419479865B24b4d32faB0Bf64638Abbd5f)                      |
| wsBTCD                     | [0x7548CDDb59182bC536E79496Ee9cC35b6d5627B8](https://etherscan.io/address/0x7548CDDb59182bC536E79496Ee9cC35b6d5627B8)                      |
| VaultMinting               | [0xc60F6892973934C93AdE915d5c249f10d4eCE7b4](https://etherscan.io/address/0xc60F6892973934C93AdE915d5c249f10d4eCE7b4)                      |
| Morpho market (sBTCD/wBTC) | [0xc89db30f…c988](https://app.morpho.org/ethereum/variable/0xc89db30f2cf64a953e99eff269246cb5454e7b023ca21db2edfa69abac08c988/wbtc-wsbtcd) |

All on Ethereum mainnet.