USDh Stablecoin on Bitcoin’s Stacks Gains $3 Million in Liquidity
The developers of USDh, a stablecoin on Bitcoin's Stacks layer 2, secured $3 million in liquidity through Hermetica. This collaboration with Zest positions USDh as the largest stablecoin on Stacks.
- Yield on USDh will be offered via lending against sBTC.
- Projected annual percentage yield (APY) could reach 50%, with an average current APY of 18%.
- Stablecoins provide stability in the crypto economy by pegging to fiat currencies.
- The liquidity amount remains small compared to dominant stablecoins like USDT and USDC, which have market caps over $138 billion and $51 billion respectively.
This development highlights the growing potential for DeFi capabilities within the Bitcoin ecosystem.