USDh, a stablecoin backed by Bitcoin, debuts on Stacks L2 with new DeFi features.
A big step forward for Bitcoin-based decentralized finance has been made by Hermetica by extending their stablecoin, USDh, to the Stacks Layer 2 network.
According to a press statement, this action enables users to hold USDh, a stablecoin entirely backed by Bitcoin and indexed to the US dollar, while earning up to 25% returns.
As opposed to other stablecoins, which are backed by bank fiat reserves, USDh is only linked to Bitcoin.
As a result, Bitcoin users can transact in dollars and earn income without ever leaving the Bitcoin ecosystem.
USDh
Four months ago, USDh began to gain traction on Bitcoin’s Layer 1 and garnered $2 million in Total Value Locked, indicating a high level of interest in stablecoins backed by Bitcoin.
Hermetica hopes to reach a wider DeFi user base while preserving Bitcoin’s security characteristics by venturing to Stacks, a Bitcoin L2. Stacks is a perfect platform for USDh’s growth, having just been improved to allow faster block times.
Significant decentralized exchanges incorporate USDh, expanding its application within the ecosystem, including Bitflow Finance, Velar, and Zest Protocol.
This initiative seeks to realize the unrealized promise of Bitcoin by enabling holders to access stablecoin liquidity without leaving the Bitcoin ecosystem.
DeFi only accounts for 1% of Bitcoin’s $1.3 trillion market capitalization, meaning that USDh can close the value differential between Bitcoin and the growing DeFi industry.
