Yield
Where does hBTC yield come from?
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Where does hBTC yield come from?
hBTC is designed to generate BTC-denominated yield by deploying into on-chain DeFi strategies and systematically converting all realized profits back into Bitcoin.
Yield is market-dependent and may vary over time.
hBTC may source yield from a range of DeFi primitives, including:
Basis strategies
Lending markets
Staking
AMM liquidity provision
Real-world assets (RWAs)
At launch, hBTC yield is primarily generated from:
Basis strategies, using USDh as the core yield mechanism
Stacks Dual Stacking, leveraging Stacks Proof-of-Transfer (PoX) consensus mechanism
Additional strategies may be introduced over time as the protocol expands.
Hermetica continuously evaluates additional on-chain yield opportunities across DeFi. New strategies are introduced only after completing technical diligence and risk review.
Any strategy changes are announced in advance and take effect only after the governance timelock has elapsed.
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