Hermetica Launches New sBTC Yield Product, USDh Liquidity Faces Boost

Hermetica, the largest DeFi mechanism on dominant Bitcoin-based L2 Stacks, has scored a major liquidity injection deal. As a result, USDh becomes the largest stablecoin by market cap in Stacks’ ecosystem.

Hermetica, Zest Protocol announce sBTC yield machine on Stacks

Hermetica, a major DeFi protocol on Bitcoin L2 Stacks, has kickstarted a new initiative that gives its USDh stablecoin a growth boost. Thanks to the huge liquidity deal, its product becomes a top stablecoin on a Bitcoin-based layer 2.

Hermetica is collaborating with Zest Protocol to introduce a new-gen 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 in USDh equivalent expected to be made available for loans.

Jakob Schillinger, founder and CEO of Hermetica, is excited by the scope of opportunities unlocked for BitcoinFi enthusiasts:

USDh’s latest liquidity boost marks a pivotal milestone for the Stacks DeFi ecosystem. 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.

Hermetica’s latest development underscores the scalability of Hermetica’s innovative stablecoin design and its attractive yield mechanism.

$3 million in fresh liquidity arrives at USDh

In total, the partners expect $3 million in liquidity to land in the USDh asset. Therefore, it becomes the largest and fastest-growing stable asset among Bitcoin-based DeFis.

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 designed to welcome more Bitcoin (BTC) enthusiasts into the thriving DeFi ecosystem of high yields.

Per the team’s estimations, the liquidity boost will also create a short-term window of high yields, with APYs projected to reach 40-50% in the early stages of staking activity.