Charms opens up a special new design space for bitcoin-backed stablecoins. The zkUSD app, built by @Ande_Labs, demonstrates just that. His app lets you lock real BTC as collateral, directly on Bitcoin, and borrow zkUSD synthetic dollars against it. zkUSD is a charm - also living on Bitcoin itself. Minting zkUSD opens up an over-collateralized debt position against the holder's BTC, responsive to bitcoin's current market price. Tokens must be overcollateralized at minting time, and are always redeemable at USD face value for collateralized BTC in the app vault. When redemptions take place, the riskiest borrower positions get liquidated first. Positions are also auto-liquidated if bitcoin's price falls, and their collateral-debt ratio falls below 110%. This makes borrowing zkUSD an extra risky affair, even compared to other bitcoin margin solutions. But It's also more rewarding: zkUSD borrowers pay ZERO interest, and only pay a 1% origination fee for loans. Charms makes this all the more special because it's truly bitcoin-native. Theoretically, zkUSD could trade on a Bitcoin native DEX like CAST as well, interacting with the nascent Bitcoin DeFi eco that Charms awakens. The app is still very early testnet stages, but you can have a look here at the interface and GitHub below. 🔗 🔗