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BTCY operates as a two-token system. Understanding when to use each token is essential for investors and developers. Token Architecture

Token Comparison

FeatureiBTCYBTCY
Token StandardERC-20ERC-4626
Transfer RestrictionsWhitelist requiredPermissionless
KYC RequiredYes, for all holdersOnly for unwrapping
DeFi ComposableLimitedFull
Admin FreezeYes (for compliance)No
RepresentsDirect debt obligationWrapped iBTCY (1:1)
Both tokens reference the same economic exposure. BTCY is designed to be backed by iBTCY in the ERC-4626 vault; the share-to-asset rate follows standard ERC-4626 mechanics and may be read via convertToAssets(). Secondary market prices can diverge from NAV.

iBTCY: Primary Token

iBTCY is the primary token representing your position in the BTCY product. Characteristics:
  • Issued by SD Global Capital Limited (BVI)
  • Holders are unsecured creditors of the issuer
  • Transfer-restricted to KYC-verified, whitelisted wallets
  • Can be wrapped into BTCY at any time (1:1)
  • Required for direct redemption to BTC
Use iBTCY when:
  • You want direct exposure without DeFi interaction
  • You prefer holding the primary regulated instrument
  • You need to redeem directly for BTC

BTCY: DeFi Vault

BTCY is an ERC-4626 vault token that wraps iBTCY, enabling permissionless DeFi composability. Until unwrapped, a BTCY holder’s economic rights are implemented through the vault asset (iBTCY) and the issuer’s arrangements described in the Subscription Agreement. Characteristics:
  • 1:1 backed by iBTCY held in the vault contract
  • Permissionless transfers (no whitelist required)
  • Can be used as collateral, in liquidity pools, or for yield strategies
  • Unwrapping to iBTCY requires KYC verification
Use BTCY when:
  • Using as collateral on lending protocols (Morpho, Euler)
  • Providing liquidity on DEXs (Curve)
  • Accessing yield derivatives (Pendle, Spectra)
  • Trading on secondary markets

Wrapping and Unwrapping

OperationProtocol FeeGas Fee
Wrap (iBTCY → BTCY)NoneUser pays
Unwrap (BTCY → iBTCY)NoneUser pays

Wrap: iBTCY to BTCY

  • Available to all iBTCY holders
  • Instant execution
  • No protocol fee (gas only)
  • No minimum amount

Unwrap: BTCY to iBTCY

  • Requires KYC verification and whitelisted wallet
  • Instant for verified addresses
  • No protocol fee (gas only)
  • No minimum amount
If you acquire BTCY on a secondary market without completing KYC, you cannot unwrap to iBTCY or access redemption proceeds. Your only exit is selling BTCY on secondary markets or completing KYC verification.

Transfer Behavior

ScenarioiBTCYBTCY
Transfer to whitelisted walletAllowedAllowed
Transfer to non-whitelisted walletBlockedAllowed
Admin freeze (sanctions)PossibleNot possible
Use as collateralLimitedFull support
Liquidation executionRequires whitelistExecutes under normal operations (emergency pause possible)
Under normal operations, BTCY transfers are permissionless. An emergency pause exists for critical security events only; see Governance.

Redemption Path

To redeem for BTC, you must hold iBTCY:
BTCY (if held) → Unwrap to iBTCY (KYC required) → Submit Redemption Request → Receive BTC
BTCY holders who cannot complete KYC cannot access redemption proceeds through the issuer.

Next Steps

Subscription

How to subscribe and receive iBTCY

BTCY for Developers

Technical integration guide

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 · Platform and issuer