The developers of USDh, a stablecoin built on the Bitcoin layer 2 protocol Stacks, have secured approximately $3 million in liquidity. This move is seen as a significant boost for USDh, potentially making it the largest stablecoin on the Stacks network. The liquidity infusion is part of a collaboration between Hermetica, the team behind USDh, and the Bitcoin lending protocol Zest, which aims to offer attractive yields on USDh through lending against sBTC. Hermetica anticipates that this initial liquidity provision could lead to a short-term increase in yields, projecting annual percentage yields (APY) as high as 50%.

Source 🔗