A novel opportunity has emerged in the crypto landscape, allowing traders to generate yield on previously dormant capital within the Bitcoin ecosystem. Hermetica and Velar have initiated a collaboration offering a 5% annual percentage yield (APY) on the Bitcoin-backed stablecoin, USDh.
This yield is accessible to users employing USDh as collateral on Velar’s perpetual futures exchange, which operates on the Bitcoin Layer 2 network, Stacks. This development introduces a significant efficiency gain for participants in the growing Bitcoin DeFi sector.
Traditionally, stablecoins deposited as collateral for leveraged trading positions on derivatives platforms remain unproductive. This new integration fundamentally changes that dynamic for Velar PerpDEX users.
Traders utilizing USDh for their Bitcoin perpetual contracts can now accrue a weekly yield directly on their active margin. This occurs without requiring separate staking or locking mechanisms, streamlining capital management.
Earn 5% USDh yield while trading on @VelarBTC‘s PerpDEX!
This is one of a kind in DeFi, trade Bitcoin with leverage while earning a passive yield. Now exclusively on the sBTC/USDh pair.
If you’re not in yet, what are you waiting for? 👀 [pic.twitter.com/Ugm4ga7Csl]
— Hermetica (@HermeticaFi) April 10, 2025
Perpetual futures represent a popular crypto derivative, enabling speculation on Bitcoin’s price movements without holding the underlying BTC. These contracts allow leveraged long or short positions, magnifying potential outcomes.
Velar’s exchange brings this sophisticated trading instrument to the Bitcoin network via Stacks, a blockchain layer designed to introduce smart contract capabilities and decentralized applications around Bitcoin.
USDh itself is a synthetic stablecoin aiming for parity with the US dollar, uniquely collateralized by Bitcoin. Unlike fiat-backed stablecoins, USDh is engineered for inherent yield generation, marking it, according to Hermetica, as the premier yield-bearing stablecoin within Bitcoin-native DeFi.
This collaboration aims to enhance capital efficiency for traders, offering a dual benefit: active participation in Bitcoin futures markets alongside passive income generation on the necessary collateral. Such innovations could significantly boost engagement within the burgeoning Bitcoin DeFi ecosystem.