> 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/the-vaults/usd-vault.md).

# USD Vault

| Property            | Value                                                                                                   |
| ------------------- | ------------------------------------------------------------------------------------------------------- |
| User deposits       | USDC                                                                                                    |
| sBTCD as collateral | Yes                                                                                                     |
| Borrowed asset      | wBTC                                                                                                    |
| Target LTV          | 50%                                                                                                     |
| Net exposure        | USD-denominated, BTC-neutral                                                                            |
| Receipt token       | bdUSD — represents the user's share of the USD Vault.                                                   |
| Target net yield    | \~12% APY (illustrative; depends on prevailing sBTCD yield, BTC borrow rates, and rebalancing friction) |

### Rebalancing logic — USD Vault

When BTC price rises: BTC debt becomes more expensive in USD terms; LTV rises. The vault deleverages by selling sBTCD, acquiring BTC, and repaying BTC debt.

When BTC price falls: BTC debt becomes cheaper in USD terms; LTV falls. The vault re-leverages by borrowing more BTC and converting it into sBTCD.

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