NUSD by BAMK.FI: The First Stablecoin Implemented as a BRC20 and Rune on Bitcoin (Updated)

7 Jun 2024

Brief Update

Building on the foundation of innovation detailed in my previous articles (BAMK - Pioneering the Nakamoto Dollar on Bitcoin, Bitcoin’s First Synthetic Dollar - The $NUSD by BAMK, and Nakamoto Dollar - BAMK Paper), BAMK has made significant strides with NUSD, the Nakamoto Dollar which we’ll look at below. But first, some numbers:

  • BAMK•OF•NAKAMOTO•DOLLAR ($BAMK) price is currently sitting at 8.55 sats after seeing a high of 10.94 sats in recent days.
  • BAMK•OF•NAKAMOTO•DOLLAR ($BAMK) Market Cap (MCAP) for the circulating supply is $8,003,375 and Fully Diluted Valuation (FDV) is $128,139,425.
  • NUSD•NUSD•NUSD•NUSD / $NUSD Total Value Locked (TVL) is $1,325,600 and USDe reserves (backed by Ethena sUSDe) $1,335,982.


BAMK recently created NUSD, the Nakamoto Dollar, the first of its kind stablecoin implemented as a BRC20 and Rune directly on the Bitcoin blockchain. The concept of NUSD is rooted in the synthetic dollar idea pioneered by Arthur Hayes. BAMK has effectively leveraged Ethena's synthetic dollar to back NUSD as both a BRC20 token and a Rune on Bitcoin. The project aims to provide a crypto-native yield and a stable asset on Bitcoin without reliance on traditional banking systems. The protocol includes the BAMK token as a governance and reward token feeding organic marketing activities as well as yield into NUSD.

Background and Development

NUSD offers a unique value proposition by allowing users to earn yield directly on the Bitcoin blockchain, which we haven’t seen before. At present, the yield offered is roughly between eight hundred and a thousand percent. The protocol's initial open mint model ensured a fair distribution and actived community participation.

BAMK has a fixed supply, with most of it (19.6B) currently uncirculated and instead set aside for future rewards and governance. The yield flywheel of NUSD has two main components: the price of $BAMK and the Total Value Locked (TVL) of $NUSD. Simply buying and holding NUSD in a wallet allows users to collect BAMK yield at each Bitcoin block, which you can now see calculated here. As of now, there are no staking or holding requirements, and payouts are calculated pro-rata by block until the first payout at block 886,454. The payout system will reward holders of $NUSD in a ‘first in, first out’ system where if you got in at the first block that $BAMK was rewarded you will be the first to be paid out, and if you are the last, you will be the last to be paid out.

See below from Bamks Git here:

Allocation: 31,250 BAMK per block, pro-rata, user_holdings/NUSD_TVL

Duration: 41,962 blocks (~291 days) Start block: 844,492*

End block: 886,454

Vesting: 31,250 BAMK per block after block 886,454, for the next 41,962 blocks

The team behind BAMK is currently mostly un-doxxed, but we can work out that Jack Liu appears to be directly involved and is acting spokesperson, which means that likely, this is the same team behind RelayX and Ordswap. All good things, all good things.

Jack explains in a video (linked below) recently put out by Mark Jeffrey that the team has been together for about five years, they’re very resilient, and they’re focusing on building non-custodial projects. From that video, you get a feeling of their commitment to transparency and organic growth in navigating the challenges of the very new Bitcoin DeFi space.

Risks and Benefits

Holding NUSD presents both risks and benefits. As a synthetic dollar, it carries the risk of Ethena’s backing. However, the reason you would want to hold NUSD is that you can take profits from Bitcoin or RUNES directly on-chain without the need for centralized exchanges, in other words, you can move in and out of NUSD and BTC without ever having to go through another party or exchange. This greatly enhances its appeal to users looking for decentralized financial solutions. And if you're an optimist, that should signal other ideas about what else NUSD might be used for in the future hint hint-wink wink. Additionally, you earn yield, which, at the moment, is roughly between eight hundred and a thousand percent.

NUSD is currently backed by USDe and eventually, the plan is for it to be fully backed by BTC once the infrastructure allows for it.

Being able to deposit BTC for NUSD finally offers a yield opportunity on Bitcoin. The yield can be influenced by changes in NUSD TVL or price fluctuations of BAMK. This is of course both another risk and opportunity. At current ratios, the APY has been sitting around 1000%, making it a very lucrative option for early NUSD holders.

Future Development

BAMK's roadmap includes several exciting developments for NUSD, such as the introduction of an authorized mint and the implementation of Automated Market Maker (AMM) swap pools. Centralized exchanges will also give the project validity and support, further boosting liquidity and integration with other stablecoins and blockchain networks, addressing one of the critical components for the success of any stablecoin. At least that is what we have seen in the past with other stablecoin projects. While we wait for the move from USDe to BTC, which could take some time, it sounds as if the team is almost ready to roll out a direct mint/redeem feature on the site which is very exciting for all involved.

Market Potential

The market potential for stablecoins like NUSD on Bitcoin, the ‘mother chain’ is for lack of a better word, mind-boggling, especially as Bitcoin continues to grow and suck in further capital from both retail and institutional investors following ETF approval and rollouts. The valuation and Total Value Locked (TVL) for NUSD are currently modest but are anticipated to increase as the project gains traction. Addressing issues such as negative funding rates, which can be managed by encouraging withdrawals and redeeming the synthetic dollar. This should further stabilize and enhance the attractiveness of NUSD. I should stress at this point that this is very early days, BAMK is essentially a brand new project as is the Runes protocol on Bitcoin, and, Ethena the ‘engine under the hood’ backing this thing is about six months old.

The ideal situation for the ecosystem is for NUSD TVL to go up, BAMK price to go up, yield to maintain these levels or rise, and for all of this to repeat. However, if BAMK's price falls, yields won’t be as attractive since payouts are in BAMK tokens. It’s important to remember that while a developed stable should yield around 10-20% max, the current high yields are due to the early stage of the project.

Additional Resources

For more information on BAMK and its projects, you can visit the following resources:

  • BAMK Official Website: Explore the latest updates, projects, and developments from BAMK.
  • BAMK Documentation: Access comprehensive documentation about BAMK’s protocols, tokens, and governance.
  • NUSD Yield Calculator: Calculate potential yields from holding NUSD using BAMK's yield calculator.
  • BAMK Leaderboard: Check out the top holders and participants in the BAMK ecosystem on the leaderboard.
  • BAMK Directory: Discover a directory of BAMK-related resources, projects, and community links.

For further insights, you can watch the latest Bamk Video BAMK video

by Mark Jeffrey (Twitter).

Additionally, The Block Runner has provided a detailed analysis in their YouTube Video here:



BAMK’s NUSD represents a groundbreaking step in the evolution of stablecoins on the Bitcoin blockchain. By combining the security and stability of a synthetic dollar with the innovative approach of BRC20 and Rune implementations, BAMK is paving the way for a new era in decentralized finance. Transparency, liquidity, and organic growth will be the pillars supporting the continued success and expansion of NUSD in the ever-evolving crypto landscape.

This post was sponsored by Crypto Content Producer Valerioshi:

Valerioshi’s Degen Reports on YouTube.

Valerioshi’s Degen Reports on Substack.

Valerioshi on X.