Hermetica, a DeFi protocol on Bitcoin Layer 2 Stacks, has announced a major initiative to elevate its Bitcoin-backed, yield-bearing stablecoin, USDh. With a liquidity injection of $3 million, USDh is poised to become the largest stablecoin on Stacks, cementing its position as a cornerstone of the growing Bitcoin DeFi ecosystem.
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Revolutionizing Stacks DeFi with sBTC Yield
In an exciting partnership with Zest Protocol, Hermetica is introducing a new sBTC yield product. This initiative allows users to borrow USDh against their sBTC holdings and stake it for high-yield returns. To kick-start this effort, up to $1 million of newly minted USDh will be allocated to Zest for loans, creating a seamless borrowing and earning cycle for DeFi participants.
“This liquidity boost is a defining moment for Stacks DeFi. USDh’s rise as the largest stablecoin on Stacks, combined with the sBTC yield product, highlights the power of Bitcoin-backed assets and the potential of DeFi protocols working together to deliver unmatched value to users.”
Jakob Schillinger, Founder and CEO of Hermetica
Tycho Onnasch, Founder and CEO of Zest Protocol, added: “sBTC represents the next evolution of programmable Bitcoin, offering users a chance to borrow against their holdings while accessing high-yield opportunities. Our collaboration with Hermetica demonstrates the immense potential of Bitcoin-backed assets to drive innovation and liquidity in DeFi.”
Unprecedented Yield Opportunities
The liquidity injection is expected to spark a short-term window of exceptional yields, with APYs projected to reach 40-50% during the initial phase of staking activity. Even before this initiative, USDh has consistently delivered significant returns, with an average APY of 18%, making it a compelling choice for DeFi investors seeking reliable yield opportunities.
USDh’s success underscores Hermetica’s focus on scalability, innovative yield mechanisms, and the broader adoption of Bitcoin-backed assets. As the first yield-bearing stablecoin on Bitcoin L1 and L2s, USDh is paving the way for greater utility and accessibility in Bitcoin DeFi.
Kevin, a partner at JPEG Trading, praised Hermetica’s achievements, stating:
“When we invested in Hermetica, we believed in the transformative potential of Bitcoin DeFi. USDh’s rapid adoption is proof that Bitcoin-backed assets can redefine the financial landscape.”
Kevin, Partner at JPEG Trading
A Promising Future
With more details on the sBTC yield product and liquidity plans set to be revealed in the coming weeks, Hermetica continues to position itself as a leader in the Bitcoin DeFi space. By fostering collaboration between DeFi protocols and driving innovation, Hermetica is reshaping what’s possible in decentralized finance.
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About Hermetica
Hermetica is the creator of USDh, the first Bitcoin-backed, yield-bearing synthetic dollar on Bitcoin L1 and L2s. Designed by a team with extensive experience at Kraken and State Street, Hermetica enables users to earn up to 25% on their dollars without leaving the Bitcoin ecosystem.
