Hermetica expands Bitcoin-backed stablecoin USDh to Stacks L2

2024-09-25 06:36:16

Abstract generation in progress

Bitcoin-backed stablecoin USDh launches on Stacks L2, offering new DeFi options.

Hermetica has expanded its Bitcoin-backed stablecoin, USDh, to the Stacks (STX) Layer 2 network, marking a significant step for Bitcoin-based decentralized finance.

This move allows users to hold USDh, a stablecoin pegged to the US dollar and fully backed by Bitcoin (BTC), while earning yields of up to 25%, according to a press release shared with crypto.news.

Unlike typical stablecoins backed by fiat reserves in banks, USDh is fully tied to Bitcoin. This allows Bitcoin users to earn yield and transact in dollars without leaving the Bitcoin eco.

USDh

USDh first gained traction four months ago on Bitcoin’s Layer 1 and quickly attracted $2 million in Total Value Locked, demonstrating strong demand for Bitcoin-backed stablecoins. By expanding to Stacks, a Bitcoin L2, Hermetica aims to tap into a larger DeFi user base while maintaining Bitcoin’s security features.

Stacks, recently upgraded to offer faster block times, is an ideal platform for USDh’s growth

Major decentralized exchanges, such as Bitflow Finance, Velar, and Zest Protocol, are integrating USDh, enhancing its use in the eco This launch aims to unlock Bitcoin’s untapped potential, allowing holders to access stablecoin liquidity without exiting the Bitcoin environment

With only 1% of Bitcoin’s $1.3 trillion market cap involved in DeFi, USDh can bridge the gap between Bitcoin’s value and the expanding DeFi market.

BTC3,21%

STX4,61%

DEFI4,14%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.