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

Bitcoin-Backed Stablecoin USDh Debuts on Stacks L2, Unfolding New DeFi Vistas

Key Takeaways:

USDh, a stablecoin backed by Bitcoin, has now expanded to the Stacks (STX) Layer 2 network.

This integration enables users to hold USDh, which is pegged to the US dollar and fully backed by BTC, while earning yields of up to 25%.

Unlike traditional stablecoins that are backed by fiat reserves in banks, USDh is fully pegged to Bitcoin.

USDh, a stablecoin pegged to the US dollar and fully backed by Bitcoin (BTC), has expanded its presence to the Stacks (STX) Layer 2 network, marking a significant development in the realm of Bitcoin-based decentralized finance (DeFi).

This integration 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 on Monday.

As opposed to the usual stablecoins that are backed by fiat reserves in banks, USDh is fully pegged to Bitcoin. This enables Bitcoin users to earn yield and transact in dollars without leaving the Bitcoin ecosystem.

USDh first made waves four months ago when it launched on Bitcoin’s Layer 1 and quickly gathered $2 million in Total Value Locked (TVL), showcasing the strong demand for Bitcoin-backed stablecoins. Now, by expanding to Stacks, a Bitcoin L2, Hermetica is aiming to tap into a larger DeFi user base while still maintaining Bitcoin’s security features.

Stacks, which recently got an upgrade to offer faster block times, is an optimal platform for USDh's growth. Major decentralized exchanges (DEXs) like Bitflow Finance, Velar, and Zest Protocol are integrating USDh, increasing its utility within the ecosystem.

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.