Hermetica (USDh) is excited to announce its partnership with Zest Protocol to fuel loan liquidations on the Stacks network. This advancement is a remarkable step forward to power Bitcoin-native decentralized finance (DeFi), leveraging the minting process of USDh.
This groundbreaking step is a major leap to make loans scalable and sBTC-backed, enhancing the ecosystem’s capital efficiency. Hermetica is the issuer of Bitcon-backed stablecoin USDh, a stablecoin supported by $BTC. The other ally, Zest Protocol, is a DeFi protocol specific to Bitcoin.
Hermetica to Bridge Liquidity from CeFi to DeFi
Hermetica leverages its smart contract infrastructure to facilitate the smooth liquidity flow between centralized exchanges and decentralized finance. On Zest Protocol, more than $1 million is available in USDh to borrow. This development marks an increase of 300% in the borrowing capacity of the protocol.
The CEO of Hermetica, Jakob Schillinger, emphasized the unique scalability and security of USDh, stating, “USDh is the first and only stablecoin designed to provide liquidity to Bitcoin-native DeFi. By powering Zest’s liquidations with USDh, we’re enabling scalable growth of sBTC-backed loans and establishing USDh as the core liquidity layer for Bitcoin-native finance.”
Zest Protocol to Broaden its Lending Capabilities Through USDh
For Zest Protocol, Hermetica is a powerful and significant ally as its CEO, Tycho Onnasch states, “With native sBTC-to-USDh minting, we can now handle liquidations more easily and scale our cBTC loan offering.”
The partnership between Hermetica and Zest Protocol aims to enable real DeFi thriving on Bitcoin. This advancement is set to provide up to 25% APY to the USDh holders. On the Stacks blockchain, USDh is the most liquid stablecoin. This stability solidifies the coin’s position as a leading pillar in the movement of DeFi, supported by Bitcoin.
