Denom Documentation
Overview
Denom.money is a unitization protocol that converts high-value hard assets into liquid, spending-grade denominations. It uses a Fixed-Ratio Minting model where each Denom token represents a fixed mathematical fraction of the underlying collateral.
The protocol launches on Base first. The mint, redeem, and vault contracts are immutable — deployed once, controlled by no one. There are no admin keys, no owner functions, and no upgrade paths. Collateral is never utilized, never lent out, and never rehypothecated. It stays untouched in the vault until the holder redeems it.
Unlike stablecoins that rely on pegs, oracles, or algorithmic mechanisms, Denom tokens have no peg to maintain. Their dollar value simply tracks the underlying asset price divided by the fixed ratio.
Accepted Collateral
Denom only accepts specific collateral types. No other assets are accepted.
| Denom | Collateral | Notes |
|---|---|---|
| $BTCD | cbBTC0xcbB7C0000aB88B473b1f5aFd9ef808440eed33Bf | Coinbase Wrapped BTC. Only accepted collateral for $BTCD on all chains. |
| $ETHD | WETH | If you deposit ETH, it auto-wraps to WETH. On redeem, WETH auto-unwraps back to ETH. |
Minting
Deposit accepted collateral into the Denom smart contract. The contract issues Denom tokens at the fixed ratio. Minting is free — 0% fee.
// Minting $BTCD with cbBTC
denom.mint(cbBTC, 1.0)
→ receive 1,000,000 $BTCD
→ fee: 0
// Minting $ETHD with ETH (auto-wraps to WETH)
denom.mint(ETH, 5.0)
→ ETH auto-wrapped to WETH
→ receive 50,000 $ETHD
→ fee: 0
The collateral is locked in the protocol's safe contract. It is never utilized, never lent out, and never rehypothecated. It sits untouched until redeemed.
Redemption
Burn Denom tokens to receive the underlying collateral back. A 0.01% fee is applied, with a minimum floor of 1 Denom token.
// Redeeming $BTCD → cbBTC
denom.redeem($BTCD, 1000000)
→ receive 1.0 cbBTC
→ fee: 100 $BTCD (0.01%)
// Redeeming $ETHD → ETH (auto-unwraps from WETH)
denom.redeem($ETHD, 10000)
→ WETH auto-unwrapped to ETH
→ receive 1.0 ETH
→ fee: 1 $ETHD (min fee)
Asset Registry
| Denom | Collateral | Ratio | Status |
|---|---|---|---|
| $BTCD | cbBTC | 1 : 1,000,000 | Active |
| $ETHD | WETH | 1 : 10,000 | Active |
| $BNBD | TBD | 1 : 1,000 | Upcoming |
| $SOLD | TBD | 1 : 1,000 | Upcoming |
| $GLDD | TBD | 1 : 5,000 | Upcoming |
Fee Structure
Minting fee
Free — encourages protocol growth
Redemption fee
Revenue for DAO treasury
Minimum fee
Prevents dust transactions
Collateral Safety
All collateral deposited into Denom is held in the protocol's safe contract. It is:
Immutable vault
The vault contract cannot be modified, paused, or upgraded by anyone. Code is law.
No admin keys
No owner functions, no multisig overrides, no backdoors. Nobody can access your collateral.
Never utilized
Collateral is not used for lending, staking, or yield farming. It sits untouched.
Always redeemable
100% of collateral is available for redemption at any time from the immutable vault.
Withdrawal Safety
To protect the protocol, Denom implements withdrawal rate limits and an emergency pause function.
BTC withdrawal cap
Max per 24-hour window
ETH withdrawal cap
Max per 24-hour window
Over-cap redemptions
Queued automatically and sent when the next 24h window opens. No user action required.
Emergency pause
Admin wallet (Denom Labs) can pause withdrawals for 24h in early days. This authority transitions to a DAO multisig over time.
Contract Parameters
Security Model
No oracle risk
Fixed ratios mean no price feeds to manipulate
No liquidation risk
No borrowing means no flash loan liquidation attacks
Immutable ratios
Governance cannot change deployed ratios
Full collateral
1:1 backing with 0% utilization
FAQ
Why cbBTC and not regular BTC?
BTC doesn't exist natively on EVM chains. cbBTC (Coinbase Wrapped BTC) is a trusted, regulated wrapped Bitcoin that can be used in smart contracts. It's the only accepted collateral for minting $BTCD on all chains.
Can I deposit ETH directly?
Yes. When you deposit ETH, the protocol automatically wraps it to WETH before minting $ETHD. When you redeem, WETH is automatically unwrapped back to ETH. You never need to handle WETH manually.
Is my collateral safe?
Yes. All collateral stays untouched in the protocol's safe contract. It is never utilized, never lent out, and never rehypothecated. It sits there until you redeem it.
Is $BTCD a stablecoin?
No. $BTCD is not pegged to anything. It is a fixed fraction of BTC. 1,000,000 $BTCD always equals exactly 1 BTC. The ratio never changes.
Can I get liquidated?
No. You are not borrowing. You are re-denominating your asset. There is no health factor, no margin call, and no liquidation engine.
Can the ratio be changed?
No. Ratios are hardcoded in the smart contract and are immutable after deployment. 1 cbBTC will always equal 1,000,000 $BTCD.
What happens if I redeem when the 24h cap is reached?
Your redemption is queued. When the next 24-hour window opens, queued withdrawals are automatically processed and sent to your wallet. No action needed on your part.
How do I earn $DNM governance tokens?
By paying redemption fees. Every 10 $BTCD or 5 $ETHD paid in fees makes you eligible to claim 1 $DNM. Tokens are claimable immediately with no vesting. There is a monthly cap of 10,000,000 $DNM across all users.