Kintsugi is a decentralized network built on the Kusama ecosystem that enables the creation of a trustless Bitcoin-backed asset, kBTC. This asset is designed to be a 1:1 representation of Bitcoin, allowing BTC holders to utilize their capital within Kusama's decentralized finance (DeFi) landscape. The protocol operates through a system of decentralized and over-collateralized Vaults. To mint kBTC, users lock their Bitcoin in a process secured by these Vaults. In turn, Vault operators lock up multi-asset collateral, such as Kusama's native token KSM, to secure the Bitcoin and insure the system. This architecture directly addresses the centralization and custodian risks often associated with other wrapped Bitcoin solutions, which typically rely on a single entity to hold the underlying BTC. With Kintsugi, the locked Bitcoin is secured by a distributed network of Vaults. The system includes an automated insurance mechanism where, if a Vault operator attempts to misappropriate the Bitcoin, their locked collateral is slashed and redistributed to affected kBTC holders. This ensures users can redeem kBTC for their underlying BTC or receive equivalent value in the collateral asset. Once minted, kBTC functions as a fully liquid asset that can be used across various DApps on the Kusama network. Its use cases include serving as collateral for borrowing, being supplied to lending protocols to earn interest, and providing liquidity to decentralized exchanges (DEXs) for yield farming opportunities. As a parachain on Kusama, Kintsugi also functions as the canary network for Interlay, its counterpart on the Polkadot network. Together, they form an interoperability solution focused on bringing Bitcoin liquidity to the entire Polkadot and Kusama ecosystem in a secure and trust-minimized manner.