Bitcoin-backed stablecoin USDh has made a significant move by launching on the Stacks (STX) Layer 2 network, opening up new possibilities for decentralized finance in the Bitcoin ecosystem. Hermetica, the creator of USDh, has designed this stablecoin to be fully backed by Bitcoin, offering users the ability to hold USDh while earning impressive yields of up to 25%.
Unlike traditional stablecoins that rely on fiat reserves in banks, USDh is directly linked to Bitcoin, providing users with the opportunity to earn yield and transact in dollars without ever leaving the Bitcoin ecosystem. This unique feature has garnered USDh significant attention, with $2 million in Total Value Locked on Bitcoin’s Layer 1 in just four months.
Expanding to Stacks L2 network allows USDh to reach a wider audience in the DeFi space while maintaining the security features of Bitcoin. With Stacks recently upgrading to offer faster block times, the platform is well-suited for USDh’s growth and adoption.
Integration with major decentralized exchanges like Bitflow Finance, Velar, and Zest Protocol further enhances USDh’s utility within the ecosystem. This launch is aimed at unlocking the untapped potential of Bitcoin, enabling holders to access stablecoin liquidity without having to leave the Bitcoin environment.
Given that only 1% of Bitcoin’s massive $1.3 trillion market cap is currently involved in DeFi, USDh has the potential to bridge the gap between Bitcoin’s value and the expanding DeFi market. This move signifies a major step towards bringing decentralized finance options to the Bitcoin community, opening up a world of possibilities for users seeking to leverage their Bitcoin holdings in the DeFi space.