> 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/token-overviews/btcd.md).

# BTCD

BTCD is the base token of the Bitcoin Dollar protocol. It tracks a peg defined as continuous 50/50 BTC/USD exposure.

### Mechanics

* Mint: users deposit USDC into the protocol and receive BTCD at the current peg price.
* Redeem: users return BTCD to the protocol and receive USDC at the current peg price. Redemption is instant.
* Volatility: BTCD's USD-denominated volatility is approximately half of BTC's, by virtue of its 50/50 construction.

### Use cases

* Holders who want exposure to the BTC trend without full BTC volatility.
* Lending: BTCD is mechanically well-suited as lending collateral because of its instant redeemability.
* AMM liquidity: BTCD paired with WBTC or USDC offer yield bearing 75% or 25% BTC exposure respectively.
* Options margin and instant-exit products.