Ducat Protocol has unveiled the first fully permissionless liquidation system built directly on Bitcoin Layer 1.Ducat Protocol has unveiled the first fully permissionless liquidation system built directly on Bitcoin Layer 1.

Launch Sept 18 Bitcoin Liquidations Go Permissionless: Ducat Launches First Bitcoin Layer 1 Liquidation Protocol

2 min read
Launch Sept 18 Bitcoin Liquidations Go Permissionless: Ducat Launches First Bitcoin Layer 1 Liquidation Protocol

A major milestone in Bitcoin finance launches Sept 18th.

Ducat Protocol has unveiled the first fully permissionless liquidation system built directly on Bitcoin Layer 1. The protocol allows anyone to liquidate undercollateralised vaults and earn a return for stabilising the peg and protocol. It’s not just a concept, it is already live on testnet.

Unlike Layer 2s, rollups or bridge-based systems, Ducat runs natively on Bitcoin. Using Taproot and multi-party computation, it delivers something never before achieved: decentralised liquidations enforced entirely by code.

With Ducat, users mint UNIT, a Bitcoin-backed stablecoin, by locking BTC in vaults. If the value of the collateral falls below 135 per cent of the debt, the vault becomes eligible for liquidation. Anyone can liquidate the vault, repay the debt and buy the BTC at a discount. It is completely permissionless.

Ducat eliminates wrapped tokens, intermediaries and off-chain settlement. The system is secure, trustless and non-custodial, aligning with Bitcoin’s core principles while enabling a new class of open source financial infrastructure.

Testnet Adoption

  • $145M in testnet BTC vaulted
  • $35M in testnet UNIT borrowed
  • 2.5M transactions
  • 60k active users

Ducat is backed by leading investors including UTXO Management, Hivemind Capital and CMS Holdings and is already partnered with a growing network of payment and De-Fi projects.

Mainnet and Ducat’s governance token launch are expected in Q4 2025 following independent audits. The liquidation system is fully operational on testnet *Sept 18th

Visit: https://ducatprotocol.com/

White Paper: https://docs.ducatprotocol.com/

Twitter/X: https://x.com/Ducatstable

Co-Founders: https://x.com/dav1dbtc | https://x.com/_4lex_4 | https://x.com/zk_bits

Press kit and media enquiries welcome

This article was originally published as Launch Sept 18 Bitcoin Liquidations Go Permissionless: Ducat Launches First Bitcoin Layer 1 Liquidation Protocol on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Market Opportunity
Solayer Logo
Solayer Price(LAYER)
$0.07752
$0.07752$0.07752
-8.61%
USD
Solayer (LAYER) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Vitalik Buterin Reveals Ethereum’s (ETH) Future Plans – Here’s What’s Planned

Vitalik Buterin Reveals Ethereum’s (ETH) Future Plans – Here’s What’s Planned

The post Vitalik Buterin Reveals Ethereum’s (ETH) Future Plans – Here’s What’s Planned appeared on BitcoinEthereumNews.com. Ethereum founder Vitalik Buterin presented the network’s new roadmap, which includes its short-, medium-, and long-term goals, at the Developer Conference held in Japan today. Scalability, cross-layer compatibility, privacy, and security were the prominent topics in Buterin’s speech. Buterin stated that the short-term focus will be on increasing gas limits on the Ethereum mainnet (L1). He said that tools such as block-level access lists, ZK-EVMs, gas price restructuring, and slot optimization will be used in this context. The goal is to maintain the network’s decentralization while increasing scalability. The medium-term goal is to enable trustless asset transfers between Layer-2 (L2) networks and achieve faster transaction finality. In this context, “Stage 2 Rollup” solutions, proof-of-conduct combinations, and optimizations for reading data from L1 are on the agenda. Furthermore, network optimizations such as shortening slot times, fast finality protocols, and erasure coding are planned to improve user experience and security. Buterin emphasized that privacy is a priority for both the short and medium term. Zero-knowledge (ZK) proofs, anonymous pools, encrypted voting, and scrambling network solutions are highlighted to protect the privacy of users’ on-chain payments, voting, DeFi transactions, and account changes. Furthermore, secure execution environments, secret query techniques, and the ability to conceal fraudulent requests and data access patterns are also targeted when reading data from the chain. Buterin’s long-term vision highlights a minimalist, secure, and simple Ethereum. This roadmap includes resistance to the risks posed by quantum computers, securing the protocol with mathematical methods (formal verification), and transitioning to ideal cryptographic solutions. Buterin stated that these strategic steps will transform Ethereum into a more scalable, user-friendly, and secure infrastructure. With the strengthening of L2 networks, more users will be able to use Ethereum with less trust assumptions. The ultimate goal is for Ethereum to become a reliable foundational infrastructure for global…
Share
BitcoinEthereumNews2025/09/18 15:57
SON DAKİKA: Kara Gecede Sürpriz Altcoin İçin Spot ETF Başvurusu Geldi!

SON DAKİKA: Kara Gecede Sürpriz Altcoin İçin Spot ETF Başvurusu Geldi!

Son dakika bilgisine göre, büyük düşüşlerin yaşandığı şu dakikalarda Bitwise, Uniswap (UNI) spot ETF için S-1 başvurusunda bulundu. UNI, son bir ay içerisinde yaklaşık
Share
Coinstats2026/02/06 06:03
Why a Bloomberg Analyst Thinks Bitcoin Could Still Fall Toward $10,000

Why a Bloomberg Analyst Thinks Bitcoin Could Still Fall Toward $10,000

The post Why a Bloomberg Analyst Thinks Bitcoin Could Still Fall Toward $10,000 appeared on BitcoinEthereumNews.com. Bitcoin broke below $71,000, triggering heavy
Share
BitcoinEthereumNews2026/02/06 05:59