Velar, a Bitcoin trading protocol announced that it would be launching a stableswap pool on Stacks in collaboration with Hermetica, a stablecoin developer. Velar will help provide the liquidity needed to power the USDh pool that will be introduced on Stacks’ Bitcoin L2.
USDh, the first synthetic dollar with yield-bearing and backed by Bitcoin, was created by Hermetica. Without leaving the Bitcoin ecosystem, it allows Bitcoiners to earn up to 25% APR on their stablecoins. With Velar’s support, Hermetica will now introduce its USDh to Stacks’ rapidly expanding DeFi ecosystem.
The technology of Velar is intended to facilitate the launch of assets on Bitcoin L2s and unleash Bitcoin liquidity. Because of its extensive liquidity, onchain users may effectively perform swaps at market rate, even while transacting with large amounts of funds. In order to guarantee that there is optimal liquidity available for the USDh stableswap pool launch, Velar will collaborate with Hermetica.
Hermetica CEO Jakob Schillinger said:
“We’re excited to work with the outstanding team at Velar to launch a USDh stableswap pool on Stacks. Finally the Bitcoin community can earn up to 25% yield on their dollars with a Bitcoin-backed stablecoin.”
Velar CEO Mithil Thakor added:
“Hermetica’s USDh stablecoin is fast becoming a cornerstone of Bitcoin DeFi, giving Bitcoiners the ability to hold their BTC while using it to mint synthetic dollars and earn yield on their assets. We’re delighted to work with the Hermetica team in creating the first USDh pool on Stacks, utilizing Velar’s advanced liquidity technology.”
Hermetica’s USDh functions as a totally BTC-backed synthetic dollar, tracking the USD price via BTC and a short perpetual futures position. Stakeholders of USDh will get liquid sUSDh, which will enable them to begin earning rewards from funding contributions with a maximum 25% yield. With the launch on Stacks, users of the Bitcoin layer-2 network will have additional access to USDh and new opportunities.
Source: https://thenewscrypto.com/velar-and-hermetica-team-up-to-launch-high-yield-stableswap-pool-on-stacks/