Hermetica
  • Welcome
  • Hermetica
    • The Problem
    • Our Solution
    • Who We Are
  • USDh
    • USDh & sUSDh
    • How it Works
      • Mint Mechanism
      • Security Mechanisms
      • Stability Mechanism
      • Yield Mechanism
      • Backing Mechanism
      • Technical Primitives
    • Historical Performance
    • Hermetica Reserve Fund
    • Audits
    • Risk Disclosures
      • Collateral Risk
      • Exchange Risk
      • Liquidity Risk
      • Funding Rate Risk
      • General Risk
  • Resources
    • User Guides
      • Buy USDh
      • Stake USDh
      • Check Your Hermetica Points
      • Check Your Hermetica Portfolio
    • FAQs
    • Legal
      • Privacy Policy
      • Terms of Service
Powered by GitBook
On this page
  1. USDh

How it Works

PreviousUSDh & sUSDhNextMint Mechanism

Last updated 5 months ago

The USDh ecosystem is made up of two assets:

1. USDh

A stablecoin consisting of Bitcoin coupled with a short perpetual futures position.

When Hermetica hedges Bitcoin with a short perpetual futures position, it creates a position that is price-stable in dollar terms.

2. sUSDh

A Bitcoin-native bond that generates up to 25% yield from funding rates.

For more information on yield, please refer to the Yield Mechanism section.

USDh and sUSDh are issued natively on Bitcoin L1 via Runes and Bitcoin L2 via Stacks.

You can buy USDh on the open market via common crypto marketplaces. Click here to get started. More markets and product integrations are coming soon.

To access the yield, users stake USDh and immediately receive the yield-bearing token, sUSDh.