Stacks is an L2 on the bitcoin. And they have variety of the projects in the fintech space are going on. USDh is one such projects which is bitcoin backed dollar being deployed. So what is stakcs? What is USDh? Let's talk.
Every stablecoin these days is backed by the USD and pegs to it’s value. And for that it adds up the treasury note to back it up. But what if instead of USD it pegs to the BTC?
What would you call such type of the stabelcoin? So such synthetic dollar which is flexible based on the BTC priced is created by Hermetica.
This coin is called as USDh. And it is being deployed on the Stacks blockchain yesterday as per the official tweet.
Stacks is a layer 2 blockchain. And the blockchain layer 2 on the bitcoin made it easier to back it to the layer 1 bitcoin and also the assets specific to that layer 2. In short deploying the dollar on the layer 2 turned out to be profitable.
This token is SIP-10 token and it does not require the bridging and the wrapping on the layer 2 token.
You can join in the Hermetica platform. You make sure lend and stake the USDh and then earn the rewards on the same. You would be getting the 25% of the percent for the staking rewards.
It’s an interesting development on the layer 2 of the bitcoin.
