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Is USDB safe?

Yes. USDB is fully backed 1:1 by US Treasury bills and cash equivalents, held by regulated custodians. This is the same backing model used by USDC and USDT. It’s issued by Brale, a regulated stablecoin-as-a-service provider.

Where does the backing come from?

Brale maintains reserves in:
  • US Treasury Bills (short-term government securities)
  • Cash at regulated financial institutions
Every USDB is redeemable for $1 USD worth of these assets.

How are BTC rewards funded?

Rewards are funded by Flashnet as an incentive program to grow the USDB ecosystem. Flashnet distributes BTC to USDB holders daily based on their balance and trading activity.
Flashnet → BTC Rewards → Distributed to USDB holders daily

What’s the minimum to earn rewards?

10 USDB. Balances below 10 USDB don’t earn rewards.

How often are rewards paid?

Daily. Rewards are calculated at midnight UTC and distributed to eligible wallets.

Can I lose my USDB?

Like any crypto asset, you can lose USDB if you:
  • Lose access to your wallet
  • Send to the wrong address
  • Get phished or hacked
USDB itself maintains its $1 peg through its treasury backing.

Can I redeem USDB for USD directly?

Currently, the primary way to exit USDB is:
  1. Swap USDB → BTC on Flashnet
  2. Bridge BTC to another chain
  3. Sell BTC for fiat
Direct USD redemption through Brale may be available for institutional users.

What happens if Brale fails?

Brale is a regulated entity with segregated customer funds. In a worst-case scenario, the backing assets would be used to redeem outstanding USDB.

Is USDB KYC required?

No KYC is required to hold or trade USDB on Spark. However:
  • Bridging from other chains may involve KYC depending on the bridge
  • Large redemptions through Brale may require verification

What’s the difference between USDB and wrapped stablecoins?

USDBWrapped USDC
Native to SparkBridged from Ethereum
Direct backingBacked by USDC on another chain
No bridge riskBridge contract risk
Spark-native rewardsNo native rewards

Can I use USDB outside of Flashnet?

Yes. USDB is a Spark-native token that can be:
  • Held in any Spark wallet
  • Transferred to any Spark address
  • Used in any Spark-compatible application
Flashnet is just one place to trade and earn rewards on USDB.