Hermetica launched hBTC, a Bitcoin-denominated yield token that allows users to deposit native BTC and accumulate daily yield also in Bitcoin, without exposure to stablecoins or dependence on leverage-based returns.
The mechanism works as follows: the deposited Bitcoin is posted as collateral on on-chain lending markets, against which the protocol borrows stablecoins. Those stablecoins are converted into USDh and deployed across two staking routes: sUSDh, which captures Bitcoin basis yield, and stUSDh, which accesses STRC yield. An additional layer comes from Stacks Dual Stacking. The gains from all three strategies are harvested and compounded back into BTC, accruing within hBTC.
Hermetica operates with a target LTV of 50%, automated rebalancing at the minute level and position closure when yield spreads fall below predefined thresholds. An on-chain reserve fund, capitalized with 5% of daily rewards, acts as a buffer against negative carry periods. All activity is verifiable in real time through the protocol’s transparency dashboards.
Access to hBTC is being released in limited cohorts. Early liquidity providers are already reporting yields of between 4% and 8% denominated in Bitcoin, with the option to redeem to the underlying asset at any time, subject to a standard three-day cooling period or an express four-hour option.
Source: https://x.com/HermeticaFi/status/2046591528819200302
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