Hermetica, a DeFi protocol on Bitcoin Layer 2 Stacks, has announced a major initiative to take its Bitcoin-backed, yield-bearing stablecoin, USDh, to the next level. With a $3 million liquidity injection, USDh is poised to become the largest stablecoin on Stacks, cementing its position as a cornerstone of the growing Bitcoin DeFi ecosystem.
—
Revolutionizing Stacks DeFi with sBTC yields
In an exciting partnership with Zest Protocol, Hermetica introduces a new sBTC yield product. This initiative allows users to borrow USDh against their sBTC shares and stake them for high returns. To boost this effort, up to $1 million of newly minted USDh will be allocated to Zest for lending, creating a seamless lending and earning cycle for DeFi participants.
“This liquidity boost is a defining moment for Stacks DeFi. The emergence of USDh 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 unparalleled 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 the chance to borrow against their holdings while accessing high-return opportunities. Our partnership with Hermetica demonstrates the tremendous potential of Bitcoin-backed assets to drive innovation and liquidity in DeFi.”
Unprecedented return opportunities
The liquidity injection is expected to lead to exceptional returns in the near term, with APYs expected to reach 40-50% during the initial phase of wagering activity. Even before this initiative, USDh has consistently delivered significant returns, with an average APY of 18%, making it an attractive choice for DeFi investors looking for reliable return opportunities.
The success of USDh underlines Hermetica’s focus on scalability, innovative return mechanisms and the broader adoption of Bitcoin-backed assets. As the first stablecoin with returns on Bitcoin L1 and L2s, USDh paves the way for greater usability and accessibility in Bitcoin DeFi.
Kevin, a partner at JPEG Trading, praised Hermetica’s performance, saying:
“When we invested in Hermetica, we believed in the transformative potential of Bitcoin DeFi. The rapid adoption of USDh is proof that Bitcoin-backed assets can redefine the financial landscape.”
Kevin, partner at JPEG Trading
A promising future
With more details about 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 across DeFi protocols and driving innovation, Hermetica is reshaping what’s possible in decentralized finance.
—
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 allows users to earn up to 25% on their dollars without leaving the Bitcoin ecosystem.
