USDh & sUSDh

For questions frequently asked about the USDh and sUSDh strategy and tokens.

Q. What is the difference between USDh and sUSDh?

A. USDh is a Bitcoin-backed synthetic dollar fully outside of the banking system that represents 1 USD due to how it is created.

sUSDh, on the other hand, is the interest bearing token issued when USDh is staked.

Q. Why are USDh and sUSDh backed by Bitcoin instead of another asset?

A. Bitcoin is the hardest collateral with the most secure blockchain in the world.

A stablecoin backed by Bitcoin's technological foundation has been sorely missing — Hermetica is here to fill that void.

Q. When will USDh and sUSDh launch?

A. We are planning to launch in Q2 2024.

Q. What are the benefits of USDh and sUSDh?

A. Since USDh is a synthetic dollar fully backed by Bitcoin. That means its a dollar fully outside banking system - its Bitcoin all the way down.

USDh and sUSDh allow you to hold a dollar immune to government censorship and intervention with significant yield opportunities.

It also allows you to hold dollars and exit Bitcoin positions without ever leaving the security of the Bitcoin blockchain.

Q. What are the risks of USDh and sUSDh?

A. Our team views the biggest risks in 2 categories that we have mitigated.

  1. Periods of draw down that may affect sUSDh. Our historical performance data shows certain moments of the past were affected by draw down. However, these periods of draw down are manageable. The draw down is not steep and accounts for only a minuscule amount of time - 6% of the reviewed time period. Our team has mitigated draw down with backstops built into the contracts and insurance funds.

  2. Counterparty risk. The ecosystem is not yet at a stage where this product can be offered exclusively using decentralized applications. Instead, Hermetica needs to use the services of centralized exchanges. Counter party risk is mitigated through the use of off-exchange settlement (OES) providers that mirrors funds onto exchanges for trading without ever being held on the exchange or their ledgers.

Q. What blockchains will USDh and sUSDh operate on?

A. We will launch on the Bitcoin L2 Stacks and the L1 Runes Protocol to start. As new L1 and L2 solutions develop on Bitcoin and other blockchains we will evaluate potential expansions.

Q. What does the 'h' in USDh/sUSDh stand for?

A. The 'h' stands for both Hermetica and hedged - a reference to how USDh is minted.

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