Overview

UNIT and Ducat exist as a meta-protocol, enforced through the MPC network and verifiable by anyone running a Ducat indexer.

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

• Ducat Indexer: Acts like a Bitcoin node, allowing anyone to verify transactions and protocol compliance.

Ducat aims to create a protocol closely aligned with Bitcoin, leveraging existing concepts to establish a stablecoin that is:

• A stable, dollar-pegged representation of Bitcoin.

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

This design involves several trade-offs, particularly around:

• Asset Management

• Supply Control

• Liquidations

Trusted Systems

DUCAT relies on two key systems:

1. Oracles: Enforce the soft peg to the US dollar.

2. MPC Network: Enforces protocol rules and validates transactions.

These systems are backstopped by users running their own indexers and reinforced by community consensus, which determines what qualifies as a valid transaction based solely on data secured by the Bitcoin network.

Resilience and Recovery

Even if the system were compromised entirely:

• The network could independently restart with a new set of validators.

• It could obviate any invalid transactions, restoring integrity without external intervention.

This structure ensures that Ducat remains robust, transparent, and true to Bitcoin's decentralized ethos.