> For the complete documentation index, see [llms.txt](https://docs.hermetica.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hermetica.fi/usdh/how-it-works.md).

# How it Works

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. 

{% embed url="<https://drive.google.com/file/d/1dAWke97dRgLvfifhYzYI4j4q8Y-onbPJ/view?usp=drive_link>" %}

#### 2. sUSDh

A Bitcoin-native bond that generates up to 15% yield from funding rates.

{% embed url="<https://drive.google.com/file/d/1e_siLnA3ZsvhrZT7TsjHnieKFmDjA2Oy/view?usp=drive_link>" %}

{% hint style="info" %}
For more information on yield, please refer to the [Yield Mechanism section](/usdh/how-it-works/yield.md).
{% endhint %}

***

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](https://app.hermetica.fi/buy) to get started. More markets and product integrations are coming soon.

To access the yield, users [stake USDh](https://app.hermetica.fi/stake) and immediately receive the yield-bearing token, sUSDh.

<table data-view="cards"><thead><tr><th></th><th data-hidden data-card-target data-type="content-ref"></th><th data-hidden data-card-cover data-type="image">Cover image</th><th data-hidden data-type="image">Cover image (dark)</th><th data-hidden data-card-cover-dark data-type="image">Cover image (dark)</th></tr></thead><tbody><tr><td>Mint</td><td><a href="/pages/rNqP6Nn4bNEa9MnHQmgS">/pages/rNqP6Nn4bNEa9MnHQmgS</a></td><td><a href="/files/aLfT7ccidXpW2BTCTWQq">/files/aLfT7ccidXpW2BTCTWQq</a></td><td><a href="/files/jNa89JBxwWdJKxiVkWut">/files/jNa89JBxwWdJKxiVkWut</a></td><td><a href="/files/VslffnSioSXyPgT2ThZC">/files/VslffnSioSXyPgT2ThZC</a></td></tr><tr><td>Security</td><td><a href="/pages/Vx0fqwQM57qplwu7UEWT">/pages/Vx0fqwQM57qplwu7UEWT</a></td><td><a href="/files/O8KHq9DWOVfe97uKyet9">/files/O8KHq9DWOVfe97uKyet9</a></td><td><a href="/files/SGbuOrMJZ1WrfcIi6hTT">/files/SGbuOrMJZ1WrfcIi6hTT</a></td><td><a href="/files/u93996Bd5Zg8Uw0Z099r">/files/u93996Bd5Zg8Uw0Z099r</a></td></tr><tr><td>Stability</td><td><a href="/pages/vB3cs871zYTME5VJFVYW">/pages/vB3cs871zYTME5VJFVYW</a></td><td><a href="/files/lXg80F6Vz3i6Mw2OAWzH">/files/lXg80F6Vz3i6Mw2OAWzH</a></td><td><a href="/files/8RGknOay943PIDBlnByj">/files/8RGknOay943PIDBlnByj</a></td><td><a href="/files/91Yb08P0AQvqraIoIwSU">/files/91Yb08P0AQvqraIoIwSU</a></td></tr><tr><td>Yield</td><td><a href="/pages/hrkIA5vi9ulecwSsNuuj">/pages/hrkIA5vi9ulecwSsNuuj</a></td><td><a href="/files/ZABGANLsOv63qHYwh81p">/files/ZABGANLsOv63qHYwh81p</a></td><td><a href="/files/qF0kHwI0bUbOFBrc1XPR">/files/qF0kHwI0bUbOFBrc1XPR</a></td><td><a href="/files/6C6CY9r5xOSVdyT0YD5Z">/files/6C6CY9r5xOSVdyT0YD5Z</a></td></tr><tr><td>Backing</td><td><a href="/pages/kqBqvCpvnD7G4SkVB4LR">/pages/kqBqvCpvnD7G4SkVB4LR</a></td><td><a href="/files/v9hhHI4TvlvhoLZH1o4I">/files/v9hhHI4TvlvhoLZH1o4I</a></td><td><a href="/files/f2J3kPwAx9ghglmxLZoa">/files/f2J3kPwAx9ghglmxLZoa</a></td><td><a href="/files/evq2FRtmSl9gLSjAbmQf">/files/evq2FRtmSl9gLSjAbmQf</a></td></tr><tr><td>Technical Primitives</td><td><a href="/pages/LycPCvrDRdKUS3Bj4Oou">/pages/LycPCvrDRdKUS3Bj4Oou</a></td><td><a href="/files/OOGfwNyc8qgOegpwJikE">/files/OOGfwNyc8qgOegpwJikE</a></td><td><a href="/files/5wEIEdsTZBm0A28QmU0L">/files/5wEIEdsTZBm0A28QmU0L</a></td><td><a href="/files/zQoPfUBb7EZ1y6QJqaX1">/files/zQoPfUBb7EZ1y6QJqaX1</a></td></tr></tbody></table>