🌎 Bitcoin-Backed Stablecoin USDh Debuts on Stacks Layer 2 Network

Bitcoin-Backed Stablecoin USDh Launches on Stacks L2, Expanding DeFi Opportunities

Hermetica has introduced its Bitcoin-backed stablecoin, USDh, to the Stacks Layer 2 network. This strategic move marks a significant advancement for Bitcoin-based decentralized finance (DeFi). Users can now hold USDh, a stablecoin pegged to the US dollar and fully backed by Bitcoin, while earning yields of up to 25%.

Unlike traditional stablecoins backed by fiat reserves, USDh is entirely tied to Bitcoin. This unique feature allows Bitcoin users to earn yields and transact in dollars without leaving the Bitcoin ecosystem.

Why USDh Stands Out

USDh first gained popularity four months ago on Bitcoin’s Layer 1, quickly attracting $2 million in Total Value Locked (TVL). This rapid growth highlights the strong demand for Bitcoin-backed stablecoins. By expanding to Stacks, a Bitcoin Layer 2 network, Hermetica aims to reach a broader DeFi user base while leveraging Bitcoin’s robust security features.

Integration with Major Decentralized Exchanges

Leading decentralized exchanges such as Bitflow Finance, Velar, and Zest Protocol are integrating USDh, enhancing its utility within the ecosystem. This integration aims to unlock Bitcoin’s untapped potential, allowing holders to access stablecoin liquidity without exiting the Bitcoin environment.

The Potential of Bitcoin in DeFi

With only 1% of Bitcoin’s $1.3 trillion market cap currently involved in DeFi, USDh has the potential to bridge the gap between Bitcoin’s value and the expanding DeFi market. This stablecoin offers a way for Bitcoin holders to diversify their portfolios and participate in DeFi without converting their assets to other cryptocurrencies.

Benefits of USDh on Stacks

Stacks has recently undergone upgrades to offer faster block times, making it an ideal platform for USDh’s growth. The combination of Stacks’ improved performance and USDh’s unique features creates a promising environment for Bitcoin-backed DeFi solutions.