Hermetica Introduces USDh, Pioneering Stablecoin on Bitcoin’s L2

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As an analyst with over two decades of experience in the financial industry, I must say that Hermetica’s move to bring USDh to Stacks is nothing short of revolutionary. Having witnessed the rise and fall of numerous stablecoins and DeFi projects, I can confidently assert that this is a game-changer.

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

Hermetica, known for its widely used USD-pegged stablecoin USDh, which is the first to be secured by Bitcoin, unveils its launch on Stacks – the most commonly used Bitcoin Layer 2 platform.

USDh is live on Stacks 🟧

Earn up to 25% APY with the first Bitcoin-backed synthetic dollar.

— Hermetica (@HermeticaFi) September 25, 2024

According to the team’s announcement, the value of this asset is supported directly by Bitcoin (BTC). Holders of USDh could potentially earn up to 25% return on their investment without any need for third-party custody.

Instead of typical fiat-backed stablecoins which depend on banks, USDh operates independently, giving Bitcoin users complete control over their assets without requiring any movement of assets beyond the Bitcoin (BTC) system.

Jacob Schillinger, CEO of Hermetica, underscored the pivotal role of this launch in advancing Bitcoin’s decentralized finance (DeFi) development across multiple areas.

To effectively increase the capacity of Bitcoin, it’s essential to have a vibrant network of Bitcoin Layer 2 solutions. The introduction of USDh on Stacks signifies the addition of significant infrastructure within one of the most active Bitcoin ecosystems. We’re thrilled to introduce yield opportunities tied to Bitcoin and a liquid dollar asset, both of which will play a key role in expanding Bitcoin DeFi on Stacks.

In just four months since its debut on the Runes protocol for Bitcoin’s primary layer, Hermetica’s USDh has experienced remarkable growth. During its exclusive private whitelist launch, the value locked in Hermetica’s first token surpassed $2 million, demonstrating a strong appetite for stablecoins tied to Bitcoin within the decentralized finance (DeFi) sector.

Unlocking potential of $360 billion market

As I initiated the deployment of Hermetica’s USDh on Stacks, I immediately connected it with some of the most sophisticated protocols available at this L2 layer, such as Bitflow Finance, Velar, and Zest Protocol. This integration will significantly boost liquidity and expand the range of applications within the Stacks DeFi ecosystem, enhancing its overall functionality and potential.

Dylan Floyd, as the CEO of Bitflow, finds the ambition behind the USDh token commendable and is intrigued by the significant milestones it achieved before its launch on Stacks L2.

US Dollar-pegged (USDh) meets all the requirements we seek in a stablecoin: It’s fully backed by Bitcoin, efficient with capital usage, and offers a sustainable yield within the crypto domain. At Bitflow, we eagerly anticipate the rollout of USDh pools within our Automated Market Making Decentralized Exchange (AMM DEX), aiming to provide robust stablecoin liquidity to our users. With our aggregator, seamless swapping between USDh and every other SIP10 token becomes possible from day one.

Given that just a small portion of the massive $1.3 trillion Bitcoin (BTC) market value is being used in Decentralized Finance (DeFi), the growth of USDh into Stacks presents fresh avenues for both investors and businesspeople, opening up new possibilities.

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2024-09-25 18:10