- USDh stablecoin offers Bitcoin holders an APR of up to 25%.
- Velar drives up liquidity and trade effectiveness in the Bitcoin ecosystem.
Bitcoin Trading Protocol Velar has announced a collaboration with Hermetica, the developer of the USDh stablecoin, to launch a stable swap pool on the Stacks Bitcoin Layer 2 network. This partnership will allow Velar to increase liquidity for the upcoming USDh pool, which intends to provide Bitcoin holders with new financial prospects.
Mithil Thakor, CEO of Velar, expressed anticipation for the collaboration, saying that, “Hermetica’s USDh stablecoin is quickly becoming a cornerstone of Bitcoin DeFi, allowing Bitcoiners to hold their BTC while minting synthetic dollars and earning yield on their assets.” Thakor highlighted the importance of using Velar’s complex liquidity technology to launch the first USDh pool on Stacks.
Hermetica’s USDh is the first synthetic dollar backed by Bitcoin, allowing users to earn up to 25% APR on their stablecoins while maintaining in the Bitcoin ecosystem. With Velar’s assistance, Hermetica intends to incorporate USDh into the rapidly expanding DeFi spot on Stacks, facilitating access to this unique stablecoin.
Enhancing Bitcoin Liquidity
Velar’s technology seeks to expand Bitcoin liquidity and facilitate the launch of additional assets on Layer 2 networks. Velar’s significant liquidity allows customers to conduct on-chain swaps efficiently at market prices, even for higher transactions. This agreement will provide optimal liquidity for the launch of the USDh stable swap pool.
USDh operates as a fully BTC-backed synthetic dollar, following the USD price utilizing Bitcoin and a short perpetual futures position. Users who stake USDh will get liquid sUSDh, allowing them to earn incentives for funding payments and increasing their return potential within the Bitcoin ecosystem.
In addition to the USDh pool, Velar recently announced the beta launch of Velar Artha PerpDex, a perpetual swaps decentralized exchange (DEX) on the hybrid Layer 2 network BOB. The initiative is an important step toward introducing on-chain long-term markets into the Bitcoin ecosystem, highlighting Velar’s dedication to promoting innovation in the DeFi field.
