Hermetica Launches Bitcoin-Backed Stablecoin USDh on Stacks Layer 2, Offering up to 25% Yield

Panama City, 25 September 2024 — Hermetica, the pioneer of the Bitcoin-backed stabelcoin USDh, announces the expansion of its flagship synthetic dollar to the Stacks Bitcoin L2 network. With the integration into Stacks, USDh becomes the first Bitcoin-backed stablecoin to enter the thriving Bitcoin ecosystem on the leading L2.

A Major Milestone in Bitcoin DeFi

USDh is transforming the way Bitcoiners can store value and earn yield. It allows users to hold a dollar-pegged stablecoin fully backed by Bitcoin, while generating a high, sustainable yield—up to 25%—without leaving the Bitcoin ecosystem. Unlike traditional fiat-backed stablecoins, USDh is not reliant on banks, enabling Bitcoiners to maintain full control of their assets.

Jakob Schillinger, CEO of Hermetica, emphasized the importance of this launch:

“In order for us to scale Bitcoin, we need a thriving ecosystem of Bitcoin L2s. With the launch of USDh on Stacks, we’re bringing a crucial piece of infrastructure to one of the leading Bitcoin ecosystems. We’re excited to now offer Bitcoin-backed yield and a liquid dollar asset that will be instrumental in scaling Bitcoin DeFi on Stacks.”

A Growing Success Story 

Hermetica’s USDh has already seen rapid success since its initial launch on the Runes protocol for Bitcoin Layer 1 (L1) four months ago. Hermetica’s first token reached $2 million in Total Value Locked (TVL) within its private whitelist launch, showcasing the significant demand for Bitcoin-backed stablecoins in the decentralized finance (DeFi) space. USDh is already integrated with major protocols such as Liquidium and MagicEden, and its expansion to Stacks further accelerates its growth trajectory. Hermetica is expanding to Stacks to leverage its ability to scale Bitcoin while still benefiting from 100% of Bitcoin’s security budget and finality. As the leading Bitcoin Layer 2 by market cap, Stacks offers an ideal platform for USDh to tap into a larger pool of DeFi users and active liquidity. This scalability ensures that Hermetica can bring Bitcoin-backed stablecoin liquidity to more users while maintaining the highest security standards.

Unlocking Bitcoin’s Untapped Potential 

The global stablecoin market has surged over 100% year-over-year for the past five years and now represents over $160 billion in value, accounting for 50% of all on-chain transactions. However, despite Bitcoin’s $1.3 trillion market cap, only around 1% of its value is currently locked in DeFi protocols—representing a vast $360 billion of untapped potential.

Hermetica aims to unlock this value by allowing users to hold and transact with a Bitcoin-backed stablecoin directly on both Bitcoin L1 and L2 networks. USDh provides a stable, liquid dollar asset that is always redeemable for 1 dollar worth of Bitcoin (1 USDh = 1 USD worth of satoshis), giving Bitcoiners the ability to securely hold dollars without ever needing to exit the Bitcoin ecosystem.

Integration into the Stacks Ecosystem

Stacks, a leading Bitcoin Layer 2 network, is undergoing a major upgrade in September 2024, including 5-second block times and full Bitcoin finality, creating an ideal environment for DeFi innovation. USDh’s expansion to Stacks positions it as a key player in this flourishing ecosystem.

The roadmap for USDh on Stacks includes strategic integrations with prominent decentralized exchanges (DEXs) and protocols such as Bitflow Finance, Velar, and Zest Protocol, which will enhance liquidity and expand use cases across the Stacks DeFi ecosystem.

Dylan Floyd, CEO of Bitflow, shared his excitement about the launch:
“USDh has all the attributes we’re looking for in a stablecoin: Fully bitcoin-backed, capital efficient, and a sustainable crypto-native yield. At Bitflow, we’re excited to launch new pools for USDh in our AMM DEX and bring deep stablecoin liquidity to our users. Thanks to our aggregator, USDh can be swapped with every other SIP10 token on Day 1”

Tycho Onnasch, CEO of Zest, added:

“Stablecoin liquidity is the backbone of a robust DeFi ecosystem. With its capital-efficient design and full Bitcoin backing, USDh has the potential to become a central piece of the Stacks ecosystem. We are excited to bring USDh to Zest Protocol users, the leading lending protocol on Stacks.”

Peter Watson, CMO of Velar, added:

“The launch of Hermetica (USDh) on the Stacks network brings a much-needed stablecoin secured by Bitcoin. Backed by a solid team that believes in Bitcoin’s decentralized ethos, USDh offers a resilient asset for the ecosystem. Velar will be initially listing USDh on our DEX, offering users the option to hold a yield-bearing stablecoin, further enhancing its accessibility.”

About Hermetica

Hermetica is a crypto-native team with deep expertise in financial technology, bringing together experience from major institutions such as Kraken and State Street. Backed by leading Bitcoin VCs, Hermetica is focused on creating innovative financial products that leverage Bitcoin’s security and transparency.