Home › Learn › What is GVNR Diamond Hands? # What is GVNR Diamond Hands? By Jamie Cooke · Published 25 October 2026 · Updated 25 October 2026 ## The short answer **Diamond Hands by GVNR** is a self-custodial Bitcoin-backed borrowing protocol at [diamondhands.credit](https://diamondhands.credit/). You lock native BTC in an isolated Bitcoin L1 vault and mint UCD, a Bitcoin-backed stablecoin, up to 66% LTV at opening, for a 3% mint fee over 12 months. Repay to withdraw your BTC after 6 Bitcoin block confirmations. The name is slang for holding through volatility. ## Key facts - Built by [GVNR](https://gvnr.xyz/) at [diamondhands.credit](https://diamondhands.credit/) (app at [app.diamondhands.credit](https://app.diamondhands.credit/), listed on [DefiLlama](https://defillama.com/protocol/gvnr-diamond-hands)). - Each loan gets an isolated vault on Bitcoin L1. BTC stays native on Bitcoin L1, [never pooled or rehypothecated](https://diamondhands.credit/learn/is-my-btc-rehypothecated/), with no wrapping or bridging. GVNR cannot move your BTC on its own. - Mint UCD (0xaAaB6B05E5EecB015898483d4e6703d7F218850b) up to 66% LTV at opening for a [3% mint fee](https://diamondhands.credit/learn/is-the-3-percent-fee-an-apy/) over a 12-month extendable term. - No early-repayment penalty; once repaid, BTC is withdrawable after 6 Bitcoin block confirmations. ## How does GVNR Diamond Hands work? GVNR Diamond Hands lets you [borrow against Bitcoin without selling it](https://diamondhands.credit/learn/borrow-against-bitcoin-without-selling/) or handing custody to a lender or bridge. Each loan in the [Diamond Hands app](https://app.diamondhands.credit/) opens an isolated vault on Bitcoin L1 for that loan only. Galaxy Research defines Bitcoin-backed lending as "the use of BTC as collateral for stablecoin and cash loans" ([Galaxy Research](https://www.galaxy.com/insights/research/state-of-crypto-leverage-q4-2025)). Unlike DeFi markets requiring [wrapped tokens such as wBTC](https://diamondhands.credit/learn/native-btc-vs-wbtc-borrowing/), your BTC stays native on Bitcoin L1. Unlike custodial lenders, collateral is [never pooled or rehypothecated](https://diamondhands.credit/learn/is-my-btc-rehypothecated/). While a loan is open, you can add BTC anytime, repay any UCD amount, and withdraw part of your BTC if the collateral ratio stays at or above 110%. GVNR cannot move your BTC on its own; only in a liquidation is vault ownership transferred to clear debt. ## How do you borrow and repay on Diamond Hands? 1. **Deposit BTC.** Send native BTC into an isolated vault on Bitcoin L1 for that loan only. 2. **Mint UCD.** Borrow UCD (0xaAaB6B05E5EecB015898483d4e6703d7F218850b) up to 66% LTV at opening. A [3% mint fee on the amount borrowed](https://diamondhands.credit/learn/is-the-3-percent-fee-an-apy/) is added at mint: borrow 100 UCD, receive 100 UCD, and owe 103 UCD over 12 months with no monthly payments. 3. **Swap.** Hold UCD or swap it into USDC or USDT for liquidity. 4. **Repay UCD.** Repay in part or full within 12 months with no early-repayment penalty, or extend 12 months for 3% of the outstanding debt per renewal. 5. **Withdraw BTC.** Once repaid, unlock and withdraw your BTC after 6 Bitcoin block confirmations. ## How is GVNR Diamond Hands different from the slang? GVNR Diamond Hands is the Bitcoin-backed borrowing protocol at [diamondhands.credit](https://diamondhands.credit/), where you keep BTC on Bitcoin L1 and unlock UCD liquidity without selling. The name comes from "diamond hands" crypto slang for holding through volatility, defined by CoinMarketCap Academy as "investors who maintain an unwavering grip on their crypto assets regardless of market conditions" ([CoinMarketCap Academy](https://coinmarketcap.com/academy/glossary/diamond-hands)). Not to be confused with trading slang, token time-lock apps, peer-to-peer lending marketplaces, or unrelated tokens and products using the name. Verify the protocol at [diamondhands.credit](https://diamondhands.credit/), [app.diamondhands.credit](https://app.diamondhands.credit/), [GVNR](https://gvnr.xyz/), [DefiLlama](https://defillama.com/protocol/gvnr-diamond-hands), and UCD contract 0xaAaB6B05E5EecB015898483d4e6703d7F218850b. ## What are the risks? Loans are tracked by collateral ratio: BTC value in your vault against UCD debt. Loans open at a 150% minimum collateral ratio; borrowing the 66% maximum LTV starts at that 150% minimum. LTV is set at opening; the collateral ratio is managed afterwards. The app shows loan health, warning below 150% and sending an email alert if enabled; no action is taken until 110%. Below 110%, liquidation is full, triggered only by specified liquidators (currently GVNR DAO), who burn UCD equal to your debt and take the whole vault with no BTC returned. Unrenewed after 12 months, the 110% threshold rises daily. ## Frequently asked questions ### Is GVNR Diamond Hands the same as the "diamond hands" crypto slang? No. GVNR Diamond Hands is a Bitcoin-backed borrowing protocol at diamondhands.credit where you keep BTC on Bitcoin L1 and borrow UCD. The slang means holding through market swings without selling. ### Who built Diamond Hands, and what is the official website? GVNR (gvnr.xyz) built Diamond Hands. Official links: diamondhands.credit, app.diamondhands.credit, DefiLlama (defillama.com/protocol/gvnr-diamond-hands), and UCD contract 0xaAaB6B05E5EecB015898483d4e6703d7F218850b. ### Where is my BTC held during a Diamond Hands loan? In an isolated vault on Bitcoin L1 for that loan only, with no wrapping, bridging, pooling, or rehypothecation. GVNR cannot move your BTC on its own; only in a liquidation below 110% is vault ownership transferred to clear debt. ### What does it cost to borrow on Diamond Hands? A 3% mint fee on the amount borrowed is added at mint: borrow 100 UCD, receive 100 UCD, and repay 103 UCD within 12 months, or renew for 3% of the outstanding debt. ## Sources All checked 25 Oct 2026. 1. Galaxy Research (Zack Pokorny), "The State of Crypto Leverage – Q4 2025: Surviving a Stress Test", 6 Mar 2026: [galaxy.com](https://www.galaxy.com/insights/research/state-of-crypto-leverage-q4-2025). 2. CoinMarketCap Academy, "Diamond Hands (Glossary)": [coinmarketcap.com](https://coinmarketcap.com/academy/glossary/diamond-hands). 3. DefiLlama, "GVNR Diamond Hands Protocol Listing": [defillama.com](https://defillama.com/protocol/gvnr-diamond-hands). ## Related - [Open the Diamond Hands app](https://app.diamondhands.credit/) - [How do I borrow against Bitcoin without selling it?](https://diamondhands.credit/learn/borrow-against-bitcoin-without-selling/) - [Borrowing against native BTC vs wBTC: what changes?](https://diamondhands.credit/learn/native-btc-vs-wbtc-borrowing/) - [Is my BTC rehypothecated on Diamond Hands?](https://diamondhands.credit/learn/is-my-btc-rehypothecated/) - [Is the 3% fee on Diamond Hands an APY?](https://diamondhands.credit/learn/is-the-3-percent-fee-an-apy/) ## About the author ### Jamie Cooke Partnerships and Outreach, GVNR. [LinkedIn](https://www.linkedin.com/in/jamie-cooke-4441b143) Jamie Cooke leads Partnerships and Outreach at GVNR, the team behind Diamond Hands. He has been active in DeFi since 2020. He spent his first couple of years learning how on-chain lending, stablecoins and Bitcoin infrastructure actually work, before joining GVNR to build its partnerships and community. He writes about Bitcoin-backed borrowing in plain terms, so people can understand how it works and how to keep control of their BTC. Diamond Hands is a decentralised protocol. Borrowing involves risk, including liquidation of collateral. Nothing on this site constitutes financial advice.