Circuit

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Circuit is a live Chia-native CDP: borrowers lock XCH, mint Bytecash, accrue a stability fee and face oracle-based Dutch-auction liquidation; BYC can also enter a savings vault. The 2026-08-16 survey measured about $0.19M of XCH collateral entirely on Chia. Because every vault, oracle update, governance action, liquidation, savings claim and exit settles on a chain without an approved Ketju review, the version-1 rejected-chain dossier controls before size or CDP design.

Kill criteria: the events that revoke this verdict
• Chia passes a versioned Ketju chain review with no active chain kill criterion
• An economically separate Circuit product develops meaningful liquidity on an approved chain

The research file

Mechanism and chain applicability

Circuit documents an on-chain Chia collateralized-debt system in which users lock XCH and borrow BYC, a Chia Asset Token intended to track one dollar. Stability fees increase debt, the Statutes price supplies delayed XCH/USD valuation, and undercollateralized vaults enter Dutch-auction liquidation. BYC holders may use a separate variable-rate savings vault. Each state transition is a Chia coin spend.

Control and loss boundary

CRT governance can change constrained Statutes after proposal, veto and implementation delays, including liquidation and interest parameters, while approved oracle announcers update price data. Circuit warns that keeper delay can impair liquidation and that failed auctions can exhaust collateral and leave bad debt, which the Treasury may cover by melting BYC. Exact voting concentration, announcer set and performance, launch audit, incident record and Treasury capacity remain deferred behind the chain gate.

Current observation and lifecycle

The DefiLlama API read on 2026-08-16 classified Circuit as CDP and reported approximately $0.19M entirely on Chia. Its adapter reads the latest XCH collateral from Circuit’s current protocol API; current documentation now states that Circuit is live on Chia mainnet even though one stale FAQ still says testnet with mainnet expected later. The live API, mainnet connection guide and asset identifier resolve that documentation inconsistency in favor of active coverage.

Why the chain dossier decides

Circuit has no deployment or exit path outside Chia. The shared version-1 rejected-chain dossier therefore controls before collateral ratio, oracle, governance, auction, bad-debt or savings-vault quality. Reopen only if Chia passes a versioned Ketju chain review or an economically separate Circuit product develops meaningful liquidity on an approved chain; then perform the full CDP and proposed-size exit review.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Circuit Docs — current mainnet protocol overview · primary · accessed 2026-08-16
  Supports: Chia, XCH collateral, BYC, mainnet, CRT governance
• Circuit Docs — collateral vault and repayment mechanics · primary · accessed 2026-08-16
  Supports: stability fees, repayment, collateral withdrawal, liquidation threshold
• Circuit Docs — liquidation and bad debt · primary · accessed 2026-08-16
  Supports: Dutch auction, keeper delay, bad debt, Treasury BYC melt
• Circuit Docs — statutes and oracle price · primary · accessed 2026-08-16
  Supports: mutable parameters, governance constraints, delayed oracle price, implementation controls
• Circuit Docs — Chia mainnet wallet connection · primary · accessed 2026-08-16
  Supports: Chia mainnet, BYC asset, live interaction
• DefiLlama adapter — Circuit protocol API collateral · secondary · accessed 2026-08-16
  Supports: protocol stats API, latest XCH collateral, Chia accounting
• DefiLlama — Circuit survey record · secondary · accessed 2026-08-16
  Supports: current TVL, Chia-only perimeter, CDP category

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.