Introducing a Revolutionary Partnership
In a groundbreaking collaboration, Hermetica has joined forces with Velar to offer traders an attractive 5% annual yield on USDh, a Bitcoin-backed stablecoin. This opportunity is available through Velar’s perpetual futures trading platform, known as PerpDEX, on the Stacks Layer 2 network associated with Bitcoin, as highlighted in a recent announcement to crypto.news.
Transforming Trading Practices
This initiative represents a significant advancement in trading practices, allowing users to earn passive income from their collateral while actively engaging in leveraged Bitcoin trades. Traditionally, stablecoins used as collateral for futures trading would remain inactive. However, with this new feature, traders can generate a weekly yield on their USDh assets while utilizing them for trades on the PerpDEX.
Exclusive Features of USDh
The yield generation is exclusive to the sBTC/USDh trading pair. This model promotes a unique offering within the decentralized finance (DeFi) space, enabling traders not only to speculate on Bitcoin’s price movements through leverage but also to accumulate earnings without the need for staking or locking their assets elsewhere.
The Mechanics of PerpDEX
Velar’s PerpDEX facilitates perpetual futures, allowing participants to speculate on Bitcoin’s future prices without requiring actual ownership of the cryptocurrency, which can enhance both risk and reward scenarios. With the Stacks network, leveraging Bitcoin’s ecosystem now comes with smart contract functionalities, broadening trading capabilities.
USDh: A Synthetic Stablecoin
Unlike conventional fiat-backed stablecoins, USDh is fully backed by Bitcoin, positioning it as a synthetic stablecoin that inherently generates yield. Hermetica claims that USDh is pioneering in providing yield within Bitcoin-native DeFi, marking a notable evolution aimed at improving capital efficiency for traders.
Conclusion
By enabling the potential for earnings on collateral while executing trades, Hermetica’s partnership with Velar may attract a larger user base into the fast-growing arena of Bitcoin-centric financial solutions.
