Hermetica Introduces 5% USDh Yield For Traders On Velar PerpDEX

Bitcoin-backed stablecoin issuer Hermetica has revealed a partnership with Velar to introduce stablecoin yield for users on Velar’s PerpDex, a decentralized exchange built on the Bitcoin Layer 2 network, Stacks. This collaboration represents the first opportunity for users to trade Bitcoin perpetual futures while earning a 5% yield on their USDh collateral. 

“The ability for traders on Velar’s PerpDEX to earn passive yield on their collateral is a significant development,” said Jakob Schillinger, CEO of Hermetica, to Mpost. “It highlights the power of DeFi composability, making futures trading on a Bitcoin DEX superior to the user experience offered by centralized platforms,” he added.

Velar PerpDex enables leveraged futures trading on Bitcoin Layer 2 networks, such as Stacks. The introduction of yield generation for USDh holders offers traders the chance to increase their digital assets while participating in BTC trading. Users automatically earn USDh yield on a weekly basis, creating a passive income stream while engaging in leveraged Bitcoin futures trades.

This new feature of earning USDh yield on Velar PerpDex enhances capital efficiency, allowing users to make the most of their collateral and generate additional returns. As a result, it expands the opportunities within Bitcoin’s evolving decentralized finance (DeFi) ecosystem.

USDh: The First Bitcoin-Backed Yield-Bearing Stablecoin 

Hermetica’s USDh is the first Bitcoin-backed synthetic dollar that offers yield. It allows Bitcoin users to earn an annual percentage rate (APR) on their stablecoins while engaging in various Bitcoin DeFi activities, including trading. Through its integration with Velar, traders on Velar PerpDex can take long or short positions on BTC, while simultaneously earning yield on their stable collateral.

“Launching the first Bitcoin-native PerpDEX with the sBTC/USDh pair is a huge step for Bitcoin DeFi,” said Mithil Thakore, CEO of Velar, in a written statement. “With USDh, not only do traders get a new way to trade with leverage, but they can also earn a 5% yield on their collateral, making this a completely new and innovative experience in Bitcoin trading,” he added.