The Butane Platform

Users interact with Butane's synthetic assets through the platform by creating and managing CDPs. The main actions on the platform are:

  • Creating CDPs by depositing collateral and minting an amount of synthetic tokens

  • Closing a CDP by repaying its debt and withdrawing locked collateral

  • Adjusting a CDP by changing the synthetic amount (minting more or burning a portion of the debt), altering the locked collateral (depositing and/or withdrawing tokens), or both

  • Liquidating another user's unhealthy CDP and claiming a portion of their collateral

  • Redeeming another user's CDP, which involves repaying some of its debt and claiming equivalent value


Debt accrues linearly as interest. Interest is paid whenever a CDP is closed due to repayment, liquidation, or redemption (note that adjusting a CDP is the same as closing that CDP and opening a new one, so accrued interest is paid for that action, and the new CDP starts with 0 interest). Interest is paid for either by burning the debt in terms of the synthetic asset of the CDP, or by burning the equivalent value in BTN, Butane's governance token.

In the event of a liquidation, a share of the excess value taken as profit by the liquidator is shared with the Butane treasury. The value sent to the treasury is in the same token proportions as what was claimed by the liquidator.

Action Composability Engine

Butane introduces an innovative approach to actions on its platform by allowing for multiple actions to be completed in a single transaction through a wholly interoperable mechanism. All of the above actions can be effected within a single transaction, on multiple CDPs, and across multiple synthetics. This maximizes efficiency and ensures that operations on Butane can be fully atomic.

Synthetic Asset Classes

  • "b"-class synthetics (e.g. USDb) are standard synthetic assets which track the price of their underlying asset 1-to-1

  • "s"-class synthetics (e.g. USDs) are synthetic assets which track the price of their underlying 1-to-1 but limit collateral options to coins with perceived lower volatility and higher stability (e.g. stablecoins)

  • "p"-class synthetics (e.g. SOLp) are "inverse" synthetics which track the inverse price of their underlying asset. For example, if SOL (the native token of the Solana blockchain) had a price of $100, the synthetic asset "SOLp" would have an oracle price of $0.01.

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