USDh Powers Zest Liquidations

We’re excited to announce that USDh now powers liquidations for Zest Protocol.

We’re bringing CeFi liquidity to Stacks DeFi and making sBTC-backed loans more scalable in the process. As a result, Zest can now use Hermetica’s smart contract infrastructure to process sBTC-backed loan liquidations and jumpstart the BTCfi flywheel  by processing liquidations through the USDh minting process.

Immediate Impact: More Capital Available

With USDh-powered liquidations now live, Zest Protocol has unlocked over $1M in additional USDh liquidity, marking a 300% increase in the borrow cap. This is made possible by Zest’s ability to directly mint USDh against sBTC, enabling increased liquidity and a more efficient liquidation process. Zest can now support larger loan offerings and provide users with more borrowing potential, making sBTC-backed loans more scalable and accessible.

USDh: The Core Liquidity Layer

As the largest and most liquid stablecoin on Stacks, USDh plays a critical role in providing liquidity to Bitcoin DeFi. Beyond its role in liquidations, USDh enables competitive yield generation, offering users up to 25% APY while remaining fully backed by Bitcoin.

This infrastructure, which directly links centralized liquidity to decentralized finance, provides an important bridge that enhances capital efficiency for Bitcoin-native DeFi applications like Zest Protocol. USDh continues to strengthen its position as the essential liquidity layer for Bitcoin-backed financial systems.

About Hermetica

Hermetica is the creator of USDh, the first Bitcoin-backed, yield-bearing synthetic dollar designed for Bitcoin-native DeFi. With USDh, you can earn up to 25% APY on your dollars, all within the Bitcoin ecosystem. Our team brings decades of experience from leading crypto companies, including Kraken, to help build the future of Bitcoin finance.