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Bitcoin-backed stablecoin USDh launches on Stacks L2, offering new DeFi options. 
Hermetica has expanded its Bitcoin-backed stablecoin, USDh, to the Stacks (<a rel="" href="https://crypto.news/price/stacks/">STX</a>) Layer 2 network, marking a significant step for Bitcoin-based decentralized finance. 
This move allows users to hold USDh, a stablecoin pegged to the US dollar and fully backed by Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank">BTC</a>), while earning yields of up to 25%, according to a press release shared with crypto.news. 
Unlike typical <a href="https://crypto.news/tag/stablecoin/" target="_blank">stablecoins</a> backed by fiat reserves in banks, USDh is fully tied to Bitcoin. This allows Bitcoin users to earn yield and transact in dollars without leaving the Bitcoin ecosystem. 
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<h2 class="wp-block-heading" id="usdh">USDh</h2> 
USDh first gained traction four months ago on Bitcoin’s Layer 1 and quickly attracted $2 million in Total Value Locked, demonstrating strong demand for Bitcoin-backed stablecoins. By expanding to <a href="https://crypto.news/tag/Stacks/" target="_blank">Stacks</a>, a Bitcoin L2, Hermetica aims to tap into a larger <a href="https://crypto.news/tag/DeFi" target="_blank">DeFi</a> user base while maintaining Bitcoin’s security features. 
Stacks, recently upgraded to offer faster block times, is an ideal platform for USDh’s growth.&nbsp; 
Major decentralized exchanges, such as Bitflow Finance, Velar, and Zest Protocol, are integrating USDh, enhancing its use in the ecosystem.&nbsp;This launch aims to unlock Bitcoin’s untapped potential, allowing holders to access stablecoin liquidity without exiting the Bitcoin environment.&nbsp; 
With only 1% of Bitcoin’s $1.3 trillion market cap involved in DeFi, USDh can bridge the gap between Bitcoin’s value and the expanding DeFi market.

Hermetica expands Bitcoin-backed stablecoin USDh to Stacks L2

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