Surge Credit: BTC-Collateralised USDC Lending on Base

2026-07-31

Surge Credit lets users deposit native Bitcoin into non-custodial Taproot vaults and borrow USDC against it on Base. The BTC never leaves a Bitcoin-native Taproot vault: it is locked on-chain with a multisig enforcement mechanism rather than being bridged to Base. This design eliminates bridge risk while allowing BTC holders to access EVM liquidity without selling their Bitcoin.

Revenue comes entirely from borrow interest paid by USDC borrowers. The interest is split: the protocol retains a configurable reserve share (reserveRateBps, set in basis points by governance) and passes the remainder to USDC liquidity providers who supply the capital being borrowed. The InterestAccrued events on Base record both the total interest and the split between the reserve and lenders.

The adapter reads those InterestAccrued events from Surge Credit's lending pool contract on Base. Each event contains the total interest accrued, the lenderCut field which indicates the lender share, and the protocol-retained amount. These are summed per day and converted to USD. The design is clean: one contract, one chain, well-structured events. All-time fees are $17,800, which is small but growing as the protocol's unique BTC-native collateral approach attracts Bitcoin holders who want on-chain liquidity without bridging risk.

Website: surge.credit · Twitter: @surge_credit