> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aarc.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# BTCY Overview

> Technical overview of BTCY for developers and integrators

BTCY is an ERC-4626 tokenized vault that wraps iBTCY, providing yield-bearing BTC exposure with full DeFi composability.

## Token Standards

| Token     | Standard | Purpose                                        |
| --------- | -------- | ---------------------------------------------- |
| **iBTCY** | ERC-20   | Primary token, KYC-gated, transfer-restricted  |
| **BTCY**  | ERC-4626 | Wrapper token, permissionless, DeFi composable |

## Why ERC-4626?

BTCY implements the ERC-4626 tokenized vault standard for seamless DeFi integration:

* **Standard interface**: Compatible with any protocol supporting ERC-4626
* **Share/asset accounting**: Built-in conversion between shares and underlying
* **Composability**: Works out-of-box with lending, DEX, and derivatives protocols

## Key Properties

### Backing (ERC-4626)

```
1 BTCY ↔ 1 iBTCY (via ERC-4626 vault mechanics)
```

BTCY is backed by iBTCY held in the vault contract. Use `convertToAssets()` for the authoritative share-to-asset rate at the vault layer; economic BTC exposure uses iBTCY NAV from the oracle stack described in [Oracles](/developers/oracles).

### Permissionless Transfers

Under normal operations, BTCY transfers are **permissionless**:

* No whitelist required for transfers
* No wallet-level freeze on transfers in the ERC-4626 design
* An emergency vault pause may exist for critical security events (see [Contracts](/developers/contracts))

<Info>
  Protocol names on this page are illustrative only and do not imply endorsement or integration commitments.
</Info>

### KYC-Gated Unwrapping

While transfers are permissionless, unwrapping BTCY to iBTCY requires:

* KYC verification with the issuer
* Whitelisted wallet address

This is the compliance checkpoint for the product.

### NAV-Linked Pricing

BTCY inherits NAV from iBTCY:

* Daily indicative NAV via Chainlink oracle
* Non-rebasing (token count constant, NAV changes)

## Use Cases

### Collateral

Use BTCY as collateral on lending protocols:

* Borrow stablecoins against BTCY
* BTCY yield offsets borrowing costs
* Liquidations execute without restriction

### DEX Liquidity

Provide BTCY liquidity:

* Curve pools (targeted)
* Earn trading fees + underlying yield

### Yield Derivatives

Access yield strategies:

* Pendle (yield tokenization)
* Spectra (fixed-rate yield)

## Integration Considerations

### For Lending Protocols

| Consideration     | BTCY Behavior                                                                         |
| ----------------- | ------------------------------------------------------------------------------------- |
| Liquidations      | Intended to execute under normal operations (emergency pause possible; see contracts) |
| Price feed        | Chainlink NAV oracle                                                                  |
| Collateral factor | Consider underlying liquidity                                                         |
| Supply caps       | Recommended due to liquidity constraints                                              |

### For DEXs

| Consideration | BTCY Behavior                             |
| ------------- | ----------------------------------------- |
| Pricing       | NAV-linked, may trade at premium/discount |
| Liquidity     | Limited until DEX launch                  |
| Arbitrage     | Wrap/unwrap requires KYC                  |

### For Yield Protocols

| Consideration | BTCY Behavior                    |
| ------------- | -------------------------------- |
| Yield source  | SSBAF (market-neutral arbitrage) |
| Yield timing  | Accrues into NAV continuously    |
| Redemption    | Via iBTCY (KYC required)         |

## Transfer Behavior

```
BTCY Transfer → Any Address → Transfer Succeeds
                                    ↓
                            Wants to Unwrap?
                           ↙              ↘
                    KYC Required       Hold or Trade
```

## Important Limitations

<Warning>
  **Unwrap requires KYC**

  Users who acquire BTCY without completing KYC cannot:

  * Unwrap to iBTCY
  * Access redemption proceeds from the issuer

  Their only exit is selling BTCY on secondary markets.
</Warning>

## Next Steps

<CardGroup cols={2}>
  <Card title="Contract Addresses" icon="file-contract" href="/developers/contracts">
    Deployed contract addresses
  </Card>

  <Card title="Oracles & PoR" icon="database" href="/developers/oracles">
    NAV and Proof of Reserves feeds
  </Card>
</CardGroup>

***

<Note>
  Available only to eligible professional/qualified investors on an invite-only basis, subject to onboarding and compliance approval. For informational purposes only and not investment advice. Not an offer to the public or a solicitation where unlawful. No retail distribution. Not available to US Persons.

  [Disclaimers](/legal/disclaimers) · [Platform and issuer](/legal/platform-legal)
</Note>