Hermetica, the pioneer of the Bitcoin-backed stabelcoin USDh, initiates the expansion of its flagship product to Stacks, a major Bitcoin L2. USDh becomes the first-ever USD-pegged stablecoin to live in the thriving Stacks ecosystem.
Hermetica’s USDh goes live on Stacks, offers 25% yield
USDh by Hermetica, a popular USD-pegged stablecoin and the first-ever synthetic dollar backed by BTC as a security layer, announces its release on Stacks, the most popular Bitcoin L2.
The asset is fully backed by Bitcoin (BTC), according to its team’s statement. Each USDh owner might enjoy up to 25% yield on their holdings in a fully noncustodial manner.
Unlike traditional fiat-backed stablecoins, USDh is not reliant on banks, enabling Bitcoiners to maintain full control of their assets with no need to move any asset outside the Bitcoin (BTC) ecosystem.
Jakob Schillinger, CEO of Hermetica, emphasized the importance of this launch for the next stage of Bitcoin’s DeFi progress in its various applications:
In order for us to scale Bitcoin, we need a thriving ecosystem of Bitcoin L2s. With the launch of USDh on Stacks, we’re bringing a crucial piece of infrastructure to one of the leading Bitcoin ecosystems. We’re excited to now offer Bitcoin-backed yield and a liquid dollar asset that will be instrumental in scaling Bitcoin DeFi on Stacks.
Hermetica’s USDh has already seen rapid success since its initial launch on the Runes protocol for Bitcoin layer 1 (L1) four months ago. Hermetica’s first token reached $2 million in total value locked (TVL) within its private whitelist launch, showcasing the significant demand for Bitcoin-backed stablecoins in the decentralized finance (DeFi) space.
Unlocking potential of $360 billion market
Immediately upon its launch on Stacks, Hermetica’s USDh is integrated with the most advanced protocols on this L2, including the likes of Bitflow Finance, Velar and Zest Protocol, which will enhance liquidity and expand use cases across the Stacks DeFi ecosystem.
Dylan Floyd, CEO of Bitflow, is impressed by the vision of USDh token and the milestones it has already accomplished prior to its debut on Stacks L2:
USDh has all the attributes we’re looking for in a stablecoin: Fully bitcoin-backed, capital efficient, and a sustainable crypto-native yield. At Bitflow, we’re excited to launch new pools for USDh in our AMM DEX and bring deep stablecoin liquidity to our users. Thanks to our aggregator, USDh can be swapped with every other SIP10 token on Day 1.
Since only a tiny fraction of the gargantuan $1.3 trillion Bitcoin (BTC) capitalization is utilized in DeFi, USDh’s expansion to Stacks offers a new level of opportunities for investors and entrepreneurs.
