Botanix has opened Bitcoin City, a gamified virtual world where users learn by completing real Bitcoin-based tasks. In this city, each neighborhood represents a real DeFi application. Scattered throughout the city are quests that involve interacting with real DeFi applications. New participants will be joining every week. You can read more about this in the article "Bitcoin 2100: An Adventure in Bitcoin City".

The first partner quest comes from Palladium, a new Bitcoin-backed USD-pegged stablecoin. Palladium has just gone live on Botanix mainnet as “the first decentralized stablecoin fully powered by Bitcoin”. In practice, users deposit BTC as collateral to mint Palladium’s stablecoin ($PUSD), bridging Bitcoin’s liquidity to stablecoin utility without banks. This lets Bitcoin holders borrow USD-value credit against their BTC while keeping their Bitcoin locked up. 

About Palladium

Palladium is built on the Botanix Bitcoin L2 and runs entirely on-chain. It uses Bitcoin as collateral in “Troves” – each borrower deposits BTC to mint PUSD at 0% interest (just a one-time fee). The protocol is governance-less: all parameters are fixed and operations are automated by smart contracts. Crucially, PUSD maintains a hard peg of $1 – holders can always redeem 1 PUSD for $1 worth of BTC. A built-in redemption mechanism and dynamic fees ensure the peg never falls below $1. In short, Palladium makes Bitcoin a crypto-native stablecoin provider: anyone with BTC can instantly get dollar liquidity while still owning bitcoin.

Palladium maintains its stability through a dual-layered over-collateralization model. Each individual minting position must meet a Minimum Collateral Ratio (MCR), while the system as a whole is backed by a higher Critical Collateral Ratio (CCR). This layered structure helps prevent insolvency and ensures that the value of Palladium’s stablecoin remains securely above its USD peg.

Key features of Palladium include:

• 0% Interest Loans: Borrow PUSD by depositing BTC with only a one-time fee. No ongoing interest accrues on your loan.

• Hard $1 Peg: PUSD is always redeemable for $1 of BTC, enforced by automated base rates and fees

• Automated (AMO-Powered): All functions are algorithmic – no multisig wallets or governance votes – truly “code is law”

• Censorship-Resistant: Open to anyone (no KYC or gatekeepers). It’s just Bitcoin and smart contracts

• Yield-Bearing Option (yPUSD): Users can stake their PUSD to receive yPUSD, a yield-bearing token that automatically accumulates real protocol yield over time

We also suggest you explore Mainframe Override. The Mainframe Override is a high-impact, gamified campaign that marks the launch of Palladium on Botanix Mainnet. It’s not just about borrowing - it’s a mission to reclaim control from centralized systems by turning idle Bitcoin into a censorship-resistant, yield-bearing digital dollar: $PUSD and $yPUSD. You can also explore Palladium in more detail by diving into their documentation.

Palladium Partner Quests

As part of Bitcoin City’s launch campaign, Palladium offers two partner “quests” (challenges) for players. Completing each quest teaches a real DeFi action and earns on-chain rewards (satoshis). Below are the quests and how to complete them:

Note: After clicking on Start Quest, you will be taken to the Palladium interface.

Quest 1 – Borrow PUSD with your Bitcoin

• Visit the Palladium app with the special onboarding code: app.palladiumlabs.org/onboarding?code=PDM0xBTC.

• Complete the guided onboarding to link your wallet.

• Go to the Borrow tab. This is where you open a Trove (a collateral position) on Palladium.

• Choose one of the accepted BTC collateral tokens (e.g. wBTC, or another wrapped Bitcoin).

• Enter the amount of BTC you want to deposit as collateral.

• Enter how much PUSD you want to borrow against that collateral (the UI will show you the current LTV, fees, etc.).

• Review your Trove details (like collateral ratio and fees). Tip: maintain a healthy LTV (≤50%) to reduce liquidation risk in volatile markets.

• Click “Open Trove” and confirm (sign) the transaction in your wallet. You have now minted PUSD by borrowing against your BTC.

• Tip: After opening the Trove, wait a few minutes for the quest to become claimable.

Quest 2 – Stake PUSD in the Yield Vault

• Go again to app.palladiumlabs.org/onboarding?code=PDM0xBTC if not already onboarded.

• After onboarding, switch to the Earn tab in the Palladium app.

• Enter the amount of PUSD you’d like to stake. (This requires that you first have PUSD in your wallet, e.g. from the previous quest or a swap.)

• Review how much yPUSD you will receive for your stake. (yPUSD is Palladium’s yield-bearing stablecoin.)

• Click “Stake” and confirm the transaction. You’ve now staked your PUSD. Over time, your yPUSD balance will grow in value as the protocol earns real yield.

• Note: yPUSD automatically earns yield (no lock-ups). This is a native way to grow your stablecoin balance.

By completing these quests, players earn reward sats on Botanix and learn firsthand how a Bitcoin-backed stablecoin protocol works. Specifically it allows players to get 100 sats and 100 wheel spins (for the Satoshi Spin game) after completing partner quests and earning NFT. This all comes together to practice opening a collateralized loan and using a yield vault – two core DeFi actions – all within an engaging city-game narrative.

Follow Palladium

Stay tuned to Palladium’s channels for updates and help. Follow Palladium on X (Twitter) and join the Palladium Discord for the latest news, announcements, and support. These channels will share new quests, tutorials, and community tips as Palladium and Botanix roll out more gamified DeFi content

Join the New World Today!

As you get involved, follow Botanix on social media to stay up to date with news and tips. Keep an eye on our updates via X (Twitter) and Discord - campaign news, weekly leaderboards, upcoming events, development progress, and the countdown to mainnet launch. It’s also a great way to connect with other players - share strategies, ask questions, or team up to crack challenging puzzles together. Being part of the community will enrich your experience and help you stay in the loop with everything related to Bitcoin 2100 and Botanix.

And finally, remember the big picture: by joining Bitcoin 2100, you’re not just playing - you’re becoming an early participant in the next chapter of Bitcoin’s evolution. You’ll gain hands-on experience with innovations that once seemed out of reach: smart contracts, DeFi, NFTs - all now possible on Bitcoin. With the Botanix mainnet launch on the horizon, you’ll be a step ahead, armed with new knowledge and maybe even some extra BTC in your wallet.

So what are you waiting for? Take your first step into Bitcoin City, claim your VIP pass, and start your journey in Bitcoin 2100 today!