Shell Finance Launches Mainnet, Bringing Decentralized Stablecoins to Bitcoin DeFi Ecosystem

Shell Finance has just launched its mainnet, and it’s a big deal for the world of decentralized stablecoins. This move is a significant step in bringing stablecoins into the Bitcoin DeFi ecosystem.

Operating on the Bitcoin Layer 1 network, Shell Finance allows users to use their Bitcoin assets—like BTC, Ordinals, Runes, BRC-20, and Atomicals—as collateral to borrow a synthetic stablecoin called sUSD. This means you can access sUSD without leaving the Bitcoin ecosystem, which enhances liquidity for these assets.

The sUSD is pegged at 1 USD and is issued by Shell Finance based on the Runes Protocol. You can borrow sUSD equal to the value of your collateral and repay it later by returning the same amount of sUSD to the protocol. It’s straightforward and user-friendly.

So, how do you use Shell Finance? You can borrow sUSD against various assets like BTC, NodeMonkes Ordinals, Ordinal Maxi Biz, Quantum Cats, Ordi, and Sats. Runes support will kick in starting January 2025, and more assets will be added over time. Plus, support for Fractal Bitcoin is set to launch in December.

Shell Finance supports several wallets, including OKX Wallet, UniSat Wallet, and Xverse Wallet. This gives users flexibility in managing their assets.

Additionally, you can participate as a Liquidator in auctions. If your collateral hits a liquidation threshold, it goes into an auction. Liquidators can buy it below the floor price with sUSD, creating unique arbitrage opportunities. Once you acquire liquidated collateral, you can resell it on platforms like DotSwap, Magic Eden, or OKX. You can also hold it for potential future gains.

Let’s talk about arbitrage trading. The sUSD might trade slightly above or below its $1 peg. This opens up chances for leverage trading. Initially, this will be available through a pool on DotSwap, with plans to expand to Magic Eden, UniSat Wallet, and more in the future.