Overview

UNIT and Ducat operate as a meta-protocol, enforced by the MPC network and verifiable by anyone running a Ducat Node.

• MPC Network: Functions similarly to Bitcoin miners by enforcing protocol rules.

• Ducat Node: Acts like a Bitcoin node, enabling anyone to verify transactions and ensure protocol compliance.

Ducat aims to build a protocol that remains closely aligned with Bitcoin, using existing concepts to establish a stablecoin that is:

• A stable, dollar-pegged representation of Bitcoin

• Secured by Bitcoin, backed by Bitcoin, and operating entirely within Bitcoin

This design involves several trade-offs, particularly in areas such as:

• Asset management

• Supply control

• Liquidations

Trusted Systems

DUCAT relies on two core systems:

• Oracles: Maintain the soft peg to the US dollar

• MPC Network: Enforces protocol rules and validates transactions

These systems are supported by users running independent validators and reinforced by community consensus. Valid transactions are determined solely by data secured on the Bitcoin network.

Resilience and Recovery

Even in the event of a complete system compromise:

• The network could restart independently with a new set of guardians

• Invalid transactions could be ignored, restoring protocol integrity without external intervention

This structure ensures Ducat remains robust, transparent, and faithful to Bitcoin’s decentralised ethos.