Bitcoin-based decentralized finance ( defi) protocol Hermetica has launched its BTC-backed synthetic dollar, USDH, on Bitcoin’s layer one (L1) through the Runes protocol. The company also announced plans to scale its Bitcoin-native defi operations using layer two ( L2) solutions like Stacks.
Hermetica Introduces Bitcoin-Backed Synthetic Dollar on Bitcoin L1
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Hermetica Launches BTC-Backed Stablecoin USDH
Hermetica‘s USDH offers Bitcoin holders a new way to maintain exposure to BTC while benefiting from the stability of a dollar-pegged asset. Hermetica claims USDH can always be redeemed for $1 worth of BTC, providing a non-custodial option for users. This launch aims to eliminate the need for Bitcoiners to rely on centralized exchanges or fiat-backed stablecoins on alternative chains.
“We’re excited to bring a first-of-its-kind product to Bitcoin defi. Starting today you’re able to hold dollars and earn an attractive yield while staying completely outside the traditional banking system,” Hermetica CEO Jakob Schillinger remarked in communication with Bitcoin.com News. “USDH doesn’t rely on banks, nor fiat but is just Bitcoin all the way down.” Schillinger added:
A stablecoin backed by the hardest asset in the world that is native to the most secure blockchain in Bitcoin.
USDH is integrated with the Runes protocol and the Liquidium lending platform, which has processed over $100 million in loan volume. This integration allows USDH to serve as a bridge between Bitcoin’s L1 and various L2 solutions, enhancing interoperability within the Bitcoin ecosystem. The introduction of USDH is expected to unlock $360 billion of idle capital in the Bitcoin economy, providing more opportunities for yield generation without centralized control.
What do you think about Hermetica’s USDH launch? Share your thoughts and opinions about this subject in the comments section below.
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