Ducat Protocol is a Bitcoin Layer 1 credit platform that lets BTC holders borrow dollar stablecoins against their Bitcoin without custodians, bridges, or L2s. All loan logic, including custody, liquidation, and redemption, is enforced directly by Bitcoin Script and Taproot. Users choose to receive stablecoins on Bitcoin (UNIT) or as USDC, depending on their needs. Vaults are structured with no single party able to move funds unilaterally. A decentralised guardian network, Chainlink oracle integration, and permissionless liquidation markets ensure the system operates transparently and without human intervention.