Stacks recently made waves in the DeFi ecosystem by offering a record-breaking 35% annual percentage yield for Hermetica’s stablecoin USDh. This development was announced on Dec. 9, with Stacks lauding the Bitcoin builders on its layer-2 scaling solution for pushing the boundaries of what’s possible in the Bitcoin ecosystem. USDh had previously offered a yield of up to 25% when it first launched on Stacks in September, but this latest offering now provides yields of up to 35% for USDh holders, making it an attractive option for users seeking higher returns.
One of the key advantages of USDh is that it is fully tied to Bitcoin, allowing users to earn yield and transact in dollars without leaving the Bitcoin ecosystem. This integration has proven popular among users, with USDh boasting a Total Value Locked of more than $2.3 million at the time of writing. The strong demand for Bitcoin-backed stablecoins like USDh underscores the growing interest in DeFi solutions that leverage the security and stability of the Bitcoin network.
In addition to the high-yield offering for USDh, Stacks also announced the launch of new features for its DeFi ecosystem, including the Velar DEX’s permissionless pool creation feature. This innovation is part of Stacks’ effort to expand its decentralized trading capabilities and provide more opportunities for users to participate in the growing DeFi ecosystem on Stacks. The Bitflow project is also gearing up to unveil a new user interface teaser for its Layer 2 Runes Automated Market Maker, further enhancing the trading experience for users on Stacks.
Furthermore, Stacks provided an update on the ALEX Surge campaign, a rewards program designed to incentivize ALEX liquidity providers to deepen and strengthen liquidity pools on the platform. By encouraging liquidity providers to participate in the ALEX Surge campaign, Stacks aims to foster a more robust and vibrant DeFi ecosystem on its platform, attracting more users and liquidity to its protocols. These initiatives demonstrate Stacks’ commitment to innovation and growth in the DeFi space, as it continues to explore new ways to enhance the user experience and expand its offerings for the benefit of the community.
Overall, Stacks’ announcement of a 35% annual percentage yield for USDh signals a new milestone for the platform and underscores its position as a leader in the Bitcoin DeFi ecosystem. With strong demand for Bitcoin-backed stablecoins like USDh and a growing array of features and initiatives to enhance the user experience, Stacks is setting the stage for further growth and innovation in the DeFi space. As the platform continues to collaborate with builders and developers in the Bitcoin ecosystem, we can expect to see more groundbreaking developments that push the boundaries of what’s possible in decentralized finance on Stacks.
