# What is UCD?

**UCD (Ultimate Collateral Dollar)** is a decentralised, Bitcoin-backed stablecoin minted through the GVNR Diamond Hands protocol - a GVNR Protocol product.

Users create a Bitcoin Vault on GVNR Diamond Hands, which is a smart-contract-controlled BTC address governed entirely by their connected wallet. By depositing native Bitcoin (not wrapped) into this vault, users open a line of credit with a maximum loan-to-value (LTV) of 66%.

When a user draws liquidity from this credit line, UCD is minted directly into their wallet. This UCD is:

*  A fully collateralised stablecoin
* Backed by Bitcoin 
* Held in the user’s own smart vault. 

UCD maintains its value by ensuring every unit is overcollateralised, starting with a minimum collateral ratio of 150%.

Because the Bitcoin never leaves the vault and is controlled solely by the user’s wallet, UCD offers a self-custodial, trust-minimised way to access liquidity without selling BTC - making it the ultimate form of Bitcoin-native borrowing.

Inside the GVNR Diamond Hands user portal, UCD is immediately available to convert into USDT, or USDR on ETH mainnet, where users can send to a destination of their choice and use for anything they wish.

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