Key highlights:
- Hermetica’s USDh stablecoin, fully backed by Bitcoin, is now available on the Stacks Layer 2 network.
- USDh offers up to 25% yield, providing Bitcoiners with a secure and decentralized dollar-pegged asset.
- The launch integrates USDh into Stacks’ DeFi ecosystem, enhancing liquidity and user accessibility.
Bitcoin-backed USDh joins the Stacks DeFi ecosystem
Hermetica has announced the expansion of its synthetic dollar asset to the Stacks Layer 2 network. This integration marks a significant milestone for USDh as it becomes the first Bitcoin-backed stablecoin on Stacks.
USDh allows Bitcoin holders to maintain exposure to the dollar while generating up to 25% yield, positioning it as an attractive alternative to traditional fiat-backed stablecoins. Unlike other stablecoins that rely on banks, USDh is fully backed by Bitcoin, allowing users to retain full control over their assets within the Bitcoin ecosystem.
“With the launch of USDh on Stacks, we are bringing crucial infrastructure to one of the most prominent Bitcoin ecosystems. This integration will help scale Bitcoin DeFi by providing a liquid, yield-bearing dollar asset that stays true to Bitcoin’s decentralized ethos.” —Jakob Schillinger, CEO of Hermetica
What is Hermetica?
Hermetica is a crypto-native company focused on developing innovative financial products that leverage Bitcoin’s security and transparency. The team, comprising experts with experience from institutions such as Kraken and State Street, is dedicated to enhancing the Bitcoin ecosystem by introducing solutions that allow users to maximize the value of their Bitcoin holdings. Backed by leading Bitcoin venture capital firms, Hermetica aims to drive the growth of decentralized finance by offering stable, Bitcoin-backed assets that remain true to the principles of decentralization.
Strong market growth and integration with Stacks
USDh has seen rapid adoption since its initial launch on the Bitcoin Layer 1 Runes protocol, reaching $2 million in Total Value Locked (TVL) during its private launch phase. The expansion to Stacks is part of Hermetica’s strategy to leverage Bitcoin’s security while scaling through Layer 2 solutions.
Stacks, the leading Bitcoin L2 by market cap, recently upgraded its network to include 5-second block times and full Bitcoin finality, creating an ideal environment for USDh’s growth. Key integrations are planned with major decentralized exchanges and protocols on Stacks, such as Bitflow Finance, Velar, and Zest Protocol, which will further enhance USDh’s liquidity and use cases across the ecosystem.
“USDh has all the attributes we look for in a stablecoin: fully Bitcoin-backed, capital-efficient, and offering sustainable yield. We’re excited to list USDh on our DEX, where it can be swapped with all SIP10 tokens from day one.” —Dylan Floyd, CEO of Bitflow
Tapping into Bitcoin’s untapped DeFi potential
Despite Bitcoin’s significant market cap of $1.3 trillion, only about 1% of its value is currently locked in DeFi protocols, revealing a vast untapped opportunity for Bitcoin-backed assets like USDh. Hermetica aims to unlock this potential by providing a stable and liquid dollar-pegged asset that remains within the Bitcoin ecosystem.
“The launch of USDh on Stacks provides a critical stablecoin backed by Bitcoin, aligning with our goal of enhancing the DeFi ecosystem,” —Tycho Onnasch, CEO of Zest Protocol
The bottom line
The introduction of USDh to Stacks marks a significant step in expanding Bitcoin-backed stablecoins within the DeFi landscape. By offering a stable, yield-bearing asset that integrates seamlessly into Bitcoin’s growing Layer 2 ecosystem, Hermetica is set to play a crucial role in the evolution of Bitcoin DeFi.
