As a result, USDh becomes the largest stablecoin by market cap in Stacks' ecosystem.
Hermetica, a major DeFi protocol on Bitcoin (BTC) L2 Stacks (STX), is kicking off a new initiative that will give its USDh stablecoin a boost. Thanks to the huge liquidity deal, its product becomes the top stablecoin on a Bitcoin-based layer 2.
Specifically, Hermetica is collaborating with Zest Protocol to introduce a next-generation sBTC yield trade. This trade will allow users to borrow USDh against their sBTC and stake it to earn high yields.
As part of this initiative, a portion of the newly minted USDh will be supplied to Zest to kick-start borrowing. According to the partners, up to $1 million in USDh equivalent will be made available for loans.
This move will inject a total of $3 million in liquidity into USDh, making it the largest and fastest-growing stable asset among Bitcoin-based DeFis. With USDh set to become the leading stablecoin on Stacks and DeFi liquidity expanding, Hermetica is positioning itself at the forefront of Bitcoin’s emerging DeFi market.
The protocol’s focus on scalability, yield generation, and innovative use cases for Bitcoin-backed assets is designed to welcome more Bitcoin (BTC) enthusiasts into the thriving DeFi ecosystem of high yields.
According to the team’s estimations, the liquidity boost will also create a short-term window of high yields, with APYs projected to reach 40-50% in the early stages of staking activity.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
