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MUSD represents an interesting take on Bitcoin-native finance—it's a stablecoin fully collateralized by BTC. What makes this compelling is the core mechanic: instead of having to liquidate your Bitcoin holdings when you need cash, you can borrow MUSD directly against your BTC as collateral.
You maintain your Bitcoin position while accessing liquidity. That's a pretty pragmatic approach to solving the age-old crypto problem of forced selling during times when you actually want to stay long. It's one of the cleaner Bitcoin DeFi ideas gaining traction lately.