Disclaimer: Hermetica is a third-party protocol. Leather does not manage its vaults or yield mechanisms, and users should evaluate each strategy’s risks before depositing BTC. Synthetic stablecoins may involve varying levels of risk, illiquidity, or market exposure. Always evaluate the strategy and terms.
Hermetica is the issuer of USDh, the first Bitcoin-backed, yield-bearing synthetic dollar. It provides an innovative alternative to fiat-pegged stablecoins by leveraging Bitcoin and derivatives markets to maintain price stability and generate real yield.
How it works
Users can purchase or swap assets to access USDh. USDh is stabilized by a delta-neutral strategy: BTC is paired with a short perpetual futures position, fully hedged to hold value in dollar terms. This mechanism ensures price stability while earning interest from derivatives funding payments.
Hermetica’s yield comes from those funding payments, passed on to users who stake USDh. As long as markets maintain strong open interest in long positions, this setup can generate substantial returns—up to 25% APY at times—without liquidating the BTC.
USDh can be traded, staked, or used across DeFi protocols on Bitcoin L2s like Stacks. Hermetica also operates a reserve fund for risk mitigation and partners with institutional custodians for secure BTC handling.
Using Hermetica with Leather
Leather gives users the ability to:
Connect directly to Hermetica from their wallet
Buy USDh by depositing BTC or other SIP-010 assets
Stake USDh to start earning immediately
Monitor their stablecoin balances, yields, and integrations with other DeFi tools
With Hermetica and Leather, BTC holders gain access to yield-generating synthetic dollars without leaving the Bitcoin ecosystem or sacrificing custody.
Learn more: hermetica.fi
