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In a groundbreaking development in Bitcoin-native decentralized finance (DeFi), Hermetica has announced the launch of USDh, the first synthetic dollar backed by Bitcoin with a promising yield of up to 25%. Set to debut in June, this innovative financial product aims to redefine liquidity and investment strategies within the Bitcoin ecosystem.
USDh Set to Transform Bitcoin DeFi with a Staggering 25% Yield Starting June
According to Cointelegraph, Hermetica has created the first Bitcoin-backed synthetic US dollar with yield-generating capabilities, marking the latest milestone in Bitcoin-native decentralized finance (DeFi).
The new synthetic dollar, USDh, will be released in June and will offer users payouts of up to 25%, according to a statement shared with Cointelegraph by Hermetica.
According to Jakob Schillinger, founder and CEO of Hermetica Labs, the new synthetic dollar will allow Bitcoiners to hold and earn a yield on their US dollars without relying on the banking system or being exposed to non-Bitcoin-related products.
"USDh will play a pivotal role in bringing increased liquidity and new use-cases to Bitcoin DeFi, allowing Bitcoiners to trade, lend, and transact in a dollar asset that is fully backed by Bitcoin," Schillinger informed Cointelegraph.
Hermetica is a Stacks-native DeFi protocol for Bitcoin that is part of a more significant movement called Bitcoin DeFi (BTCFi). This movement intends to provide DeFi features to the world's first blockchain network.
The introduction of the first Bitcoin-backed synthetic dollar comes two months after Ethena's USDe debutedwith a 27.6% yield for investors, raising significant concerns about the protocol's viability.
USDh Promises Sustainable 25% Yield Amid High Returns in Bitcoin Futures Markets
