Stacks Launches 35 Percentage Annual Yield on USDh, Setting Record for Bitcoin Layer 2 DeFi

Stacks Launches 35 Percentage Annual Yield on USDh, Setting Record for Bitcoin Layer 2 DeFi

Stacks, a leading Bitcoin layer-2 scaling solution, has unveiled a new milestone in its DeFi ecosystem, launching an impressive 35% annual percentage yield (APY) on Hermetica’s stablecoin, USDh. This new offering sets an all-time high for the Stacks DeFi ecosystem, marking a significant step forward in the development of Bitcoin-backed decentralized finance.


New All-Time High for Stacks DeFi Ecosystem

On December 9, Stacks revealed the launch of the 35% yield, further solidifying its position as a key player in the growing Bitcoin DeFi space. This yield applies to USDh, a stablecoin fully tied to Bitcoin, providing users the ability to earn returns and transact in U.S. dollars without leaving the Bitcoin ecosystem.


“Shoutout to the incredible Bitcoin builders on the leading Bitcoin L2 for pushing the boundaries of what’s possible on Bitcoin!” said the official Stacks account in their announcement, reflecting the innovative spirit behind the new launch.


Previously, USDh offered yields up to 25% when it debuted on Stacks in September. However, with this latest increase, USDh now offers a 35% yield, making it one of the most attractive opportunities in the Bitcoin DeFi space. The stablecoin’s Total Value Locked (TVL) has already surpassed $2.3 million, highlighting the growing demand for Bitcoin-backed stablecoins within the Stacks ecosystem.


USDh’s Role in Bitcoin-Backed DeFi

USDh provides an opportunity for Bitcoin holders to generate yield while remaining within the Bitcoin network, an appealing feature for users seeking dollar-denominated assets without needing to exit the Bitcoin ecosystem. With Bitcoin recently crossing the $100,000 mark, USDh’s rise to prominence highlights the increasing interest in decentralized finance products that bridge the gap between Bitcoin and traditional financial systems.


Innovations in Stacks DeFi

Alongside the launch of the 35% yield for USDh, Stacks has also introduced other significant developments in its DeFi ecosystem. One of the key updates includes the launch of the Velar DEX’s new permissionless pool creation feature, expanding the options available to decentralized traders on the platform. This feature marks an important milestone, with Stacks joining other projects in bringing permissionless pools to its ecosystem.


Additionally, the Bitflow project on Stacks is preparing a teaser for its upcoming user interface, offering a sneak peek at its Layer-2 Runes Automated Market Maker (AMM), a decentralized trading protocol designed for Layer-2 solutions built on Stacks.


Stacks also shared an update on its ALEX Surge campaign, an incentive-driven program designed to encourage ALEX liquidity providers to create deeper and more liquid pools on the ALEX platform. This campaign is part of Stacks’ broader strategy to foster liquidity and growth within its DeFi ecosystem.


Looking Ahead

With the launch of the 35% yield for USDh, Stacks continues to push the boundaries of what’s possible within the Bitcoin ecosystem, offering compelling new opportunities for DeFi participants. As Bitcoin's price continues to climb and DeFi innovations expand on Stacks, the platform is positioning itself at the forefront of Bitcoin-backed financial products.


As the Stacks DeFi ecosystem continues to thrive, these updates signal a new era of growth for the Bitcoin layer-2 platform and its users, with more developments likely to follow in the coming months.

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