What is $sUSD?
$sUSD is a stablecoin synthetic asset issued by Shell Finance based on the Runes Protocol, valued at 1 US Dollar ($USD). Users can borrow an equivalent amount of $sUSD using their BTC and other on-chain assets as collateral. When users decide to repay the loan, these $sUSD are returned to the protocol account.$sUSD serves several purposes:
Instant Exchange to $BTC: Users can instantly exchange $sUSD for $BTC using trading pairs on UniSat-swap or Magiceden.
Trading in the Market: On trading platforms such as Magiceden、 OKX Web3 Wallet, and UniSat, users can place orders to exchange $sUSD for $BTC.
Bitcoin Layer2 Applications: In the future, $sUSD can be used as a pricing asset in various Bitcoin Layer2 scenarios.
Does Shell Finance Charge Any Fees?
When borrowers initiate a lending position, Shell Finance charges a one-time fee based on the interest rate and loan duration, meaning borrowers must pay the interest upfront. For instance, if Alice uses $BTC as collateral to borrow 1000 $sUSD with a loan term of one year and an interest rate of 12%, she will receive 1120 $sUSD. Of this amount, 1000 $sUSD is deposited into her account, and the remaining 120 $sUSD is collected by Shell Finance as prepaid interest. Alice must repay 1120 $sUSD to unlock and retrieve her collateralized $BTC upon repayment.
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