How it Works

The USDh ecosystem is made up of two assets:

1. USDh

A synthetic dollar 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. This product is the synthetic dollar USDh.

2. sUSDh

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

---

USDh and sUSDh are issued on Bitcoin L1 via the Runes protocol and will soon launch on several Bitcoin L2s, starting with Stacks.

USDh is available to buy on popular DeFi markets like DotSwap and Magic Eden and can be borrowed against on Liquidium. More markets and product integrations are coming soon.

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