Velar, a protocol in the Bitcoin trading ecosystem, established a strategic alliance with stablecoin developer Hermetica to deploy a USDh stable swap pool on Stacks’ Bitcoin Layer 2 (L2) expansion. This initiative seeks to enhance the DeFi ecosystem surrounding Bitcoin, offering users more liquidity and yield than ever before.
Velar is Expanding Bitcoin Liquidity and DeFi with USDh
Hermetica provides excellent value to its Users by allowing them to buy USDh, its Bitcoin-based synthetic stablecoin. USDh stablecoin enables Bitcoin holders to make a ‘surplus’ of up to 25 percent (APR) without leaving the Bitcoin environment. With the launch of the USDh pool, Hermetica delivers new sources of liquidity and yield to the rapidly growing DeFi network of Stacks.
Velar’s advanced liquidity technology will support the stable swap pool on Stacks, providing deep liquidity to Bitcoin holders. Velar’s system enables on-chain users to execute large trades at optimal market rates, ensuring seamless transactions even with significant trade volumes. The USDh stable swap pool is expected to accelerate DeFi adoption on Stacks while reinforcing Bitcoin’s position within the decentralized finance ecosystem.
Jakob Schillinger, CEO of Hermetica, expressed his excitement for the collaboration, stating that this partnership represents a significant step forward for Bitcoin DeFi. He emphasized the importance of bringing USDh’s high-yield potential to the Stacks network, unlocking opportunities for Bitcoin holders to diversify their strategies without leaving the space.
Mithil Thakor, Velar’s CEO, highlighted how USDh has become a cornerstone in the Bitcoin DeFi landscape. According to Thakor, USDh’s integration into Stacks represents a milestone for Velar and Hermetica as they combine their expertise to offer unprecedented liquidity solutions to Bitcoiners.
Unlocking Bitcoin-Powered DeFi
Hermetica’s USDh stablecoin is an entirely BTC-backed synthetic dollar, which mirrors the BTC price using a perpetual futures position. This system enables Bitcoin holders to stake their USDh and earn yields of up to 25% while maintaining exposure to Bitcoin’s price movements. As Velar integrates this technology into Stacks, the partnership will significantly expand liquidity, further developing Bitcoin’s DeFi ecosystem.