Hermetica, a decentralized finance (DeFi) protocol on Bitcoin L2 Stacks, has unveiled a significant new initiative that will elevate its Bitcoin-backed yield-bearing stablecoin, USDh, to new heights. The protocol has finalized a liquidity deal that will bring in approximately $3 million in USDh liquidity, making it the largest stablecoin on Stacks. This development underscores the scalability of Hermetica’s innovative stablecoin design and its attractive yield mechanism.
Hermetica is collaborating with Zest Protocol to introduce a compelling sBTC yield trade, allowing users to borrow USDh against sBTC and stake it to earn high yields. As part of this initiative, a portion of the newly minted USDh will be supplied to Zest to kick-start borrowing, with up to $1 million USDh expected to be made available for loans.
“USDh’s latest liquidity boost marks a pivotal milestone for the Stacks DeFi ecosystem,” said Jakob Schillinger, Founder and CEO of Hermetica. “As USDh becomes the largest stablecoin on Stacks, this initiative and the sBTC yield trade demonstrate not only the power of Bitcoin-backed assets on Stacks but also the potential for different DeFi protocols to collaborate, to deliver new, high-yield opportunities for users to borrow, stake, and earn.”
“This sBTC yield trade is a game-changer for the Stacks DeFi ecosystem,” said [Name, Title of Hermetica]. “It not only showcases the power of Bitcoin-backed assets on Stacks but also highlights how seamlessly different DeFi protocols can work together to deliver high-yield opportunities to users. We’re excited to see users borrow, stake, and earn in a way that has never been possible before.” …
The liquidity boost will also create a short-term window of high yields, with APYs projected to reach 40-50% due to the early stages of staking activity. This presents an exciting opportunity for DeFi users to capitalize on high returns while helping to bootstrap a rapidly growing stablecoin ecosystem on Stacks. Currently, USDh already proved to bring in significant yield for DeFi users, with an average APY of 18%.
With USDh poised to become the leading stablecoin on Stacks and DeFi liquidity expanding, Hermetica continues to position itself at the forefront of Bitcoin’s emerging DeFi market. The protocol’s focus on scalability, yield generation, and innovative use cases for Bitcoin-backed assets is driving both user adoption and investor interest.
Tycho Onnasch, Founder and CEO of Zest Protocol said, “We’re thrilled to collaborate with Hermetica to unlock the full potential of sBTC within the Stacks ecosystem. sBTC represents the next evolution of programmable Bitcoin, offering users the ability to borrow against their Bitcoin holdings while participating in high-yield opportunities. This partnership not only enhances liquidity but also demonstrates the power of Bitcoin-backed assets in driving innovation and expanding the utility of Bitcoin DeFi.”
More details about the liquidity initiative, yield opportunities, and sBTC yield trade will be announced in the coming weeks as Hermetica continues to build out its ecosystem.
“We believe in the transformative potential of Bitcoin-backed assets. USDh is now poised to become the leading stablecoin on Stacks and soon across all ecosystems forming on top of Bitcoin. When we invested in Hermetica, it was with the belief that Bitcoin DeFi has a place in the new financial stack and USDh’s continued adoption is evidence we were right.” said Kevin, partner at JPEG Trading.
About Hermetica
Hermetica is the creator of USDh, the first Bitcoin-backed, yield-bearing synthetic dollar on Bitcoin L1 and L2s. Earn up to 25% on your dollars without leaving Bitcoin. Hermetica is a crypto veteran team with previous experience at Kraken and State Street.
This post was last modified on Jan 22, 2025, 17:09 GMT 17:09