USDh Powers Zest Liquidations to Deliver Deeper Stablecoin Liquidity on Stacks
Panama City, Panama, April 17th, 2025, Chainwire
Hermetica, the Bitcoin-backed stablecoin issuer, has announced that it now powers liquidations of the Stacks lending protocol Zest. Zest will use the USDh mint process for liquidations, allowing them to scale sBTC-backed loans and jumpstart the BTCfi flywheel.
Hermetica’s smart contract infrastructure acts as a bridge for centralized exchange liquidity to flow into DeFi. Zest will use the USDh mint process for liquidations, accessing CeFi liquidity to support greater capital efficiency for DeFi users on Stacks.
Over $1M in USDh is now available to be borrowed on Zest, marking a 300% increase in the borrow cap.
Jakob Schillinger, CEO of Hermetica, said: “USDh is the first and only stablecoin designed to provide liquidity to Bitcoin-native DeFi. By powering Zest’s liquidations with USDh, we’re enabling scalable growth of sBTC-backed loans and establishing USDh as the core liquidity layer for Bitcoin-native finance. No other stablecoin has the infrastructure to deliver liquidity with this level of security and native Bitcoin backing.”
Tycho Onnasch, CEO of Zest Protocol, added: “With native sBTC-to-USDh minting, we can now handle liquidations more easily and scale our sBTC loan offering. Hermetica has delivered a key primitive for real DeFi on Bitcoin, plugging directly into what we’re building at Zest: Stacks DeFi on the Bitcoin standard.”
As the largest and most liquid stablecoin on Stacks, USDh plays a vital role in powering the Stacks DeFi ecosystem with liquidity. It enables holders to earn up to 25% APY in yield while benefiting from a stable asset that is fully backed by Bitcoin.
About Hermetica
USDh is the first Bitcoin-backed, yield-bearing synthetic dollar outside the fiat system. Its crypto-native team, who have previous experience at Kraken and State Street, are backed by leading institutional asset manager Two Prime. USDh operates as a stablecoin that is backed by the hardest asset in the world (BTC) that is native to the most secure blockchain in Bitcoin.
Learn more: https://www.hermetica.fi/
About Zest Protocol
Zest Protocol is a DeFi protocol built for Bitcoin. The protocol strives to create a vibrant DeFi ecosystem around BTC the asset. Zest Protocol recently raised a $3.5m Seed Round led by Tim Draper’s Draper Associates, with participation from Binance Labs, Flow Traders, Trust Machines, Asymmetric, and many more (more information in Reuters article).
For more information, visit www.zestprotocol.com
