.jpg "Hermetica Raises $1.7M for Bitcoin-Backed Stablecoin USDh")
[8:33 PM · Oct 16, 2024] – Hermetica, a pioneering DeFi platform built on Bitcoin, has announced the successful closure of a $1.7 million seed funding round. This investment will fuel the growth and development of USDh, the first Bitcoin-backed, yield-generating synthetic dollar available natively on Bitcoin Layer-1 (L1) via Runes and Layer-2 (L2) through Stacks. The funding round was led by UTXO Management, with participation from CMS Holdings, Ethos Fund, Trust Machines SPV, Newman Capital, and Silvermine. Several prominent angel investors also contributed, including Tycho Onnasch (Zest Protocol), Robin Obermaier (Liquidium), Mithil Thakore (Velar), Matt Maduno (Arch Network), and GM Chung (DeSpread).
USDh: Bridging the Gap Between Bitcoin and DeFi
USDh offers a unique solution to the challenges faced by Bitcoin holders seeking to participate in DeFi. Currently, less than 1% of the $1.3 trillion Bitcoin market cap is utilized in DeFi. USDh aims to unlock this potential by providing a stable, liquid dollar asset redeemable for BTC, enabling users to hold dollars within the Bitcoin ecosystem securely and participate in DeFi activities without leaving the network.
Unlike traditional stablecoins often pegged to fiat currencies and offering little to no yield, USDh offers users the opportunity to earn up to 25% APY through perpetual futures funding payments. This innovative approach provides a compelling alternative to traditional stablecoins, particularly in the current economic climate where inflation erodes the value of non-yielding assets. USDh is designed to maintain price stability through its Bitcoin backing, offering a decentralized and secure alternative to fiat-backed stablecoins, leveraging Bitcoin's inherent strengths.
Funding to Drive Ecosystem Growth and Integration
The newly secured funding will be strategically allocated to accelerate the integration of USDh across the Bitcoin ecosystem. Key priorities include enhancing liquidity on decentralized exchanges (DEXs), establishing partnerships with institutional custodians, and developing scalable off-exchange settlement options. Hermetica is committed to building a robust and accessible infrastructure for USDh, ensuring its widespread adoption and utility within the Bitcoin DeFi landscape.
A Vision for the Future of Bitcoin DeFi
Hermetica envisions USDh becoming a foundational building block for a decentralized financial system built on Bitcoin. By offering a yield-bearing, Bitcoin-backed stablecoin, Hermetica aims to empower Bitcoin holders to participate in DeFi activities while mitigating the risks associated with fiat-backed stablecoins.
"We believe stablecoins are a foundational building block for a decentralized financial system," said Jakob Schillinger, CEO of Hermetica Labs. "USDh is the ideal Bitcoin-backed stablecoin — capital efficient, independent of the fiat system, and yield-generating."
Simon Shin, Managing Partner at Ethos Fund, echoed this sentiment, stating, "We are excited about Hermetica because they are unlocking significant value within the Bitcoin ecosystem with the creation of USDh. We believe their ability to seamlessly integrate stablecoins into Bitcoin’s Layer 1 and Layer 2 networks presents a massive opportunity. USDh will become a fundamental tool for Bitcoin users seeking a reliable dollar asset without leaving the ecosystem.”
About Hermetica
Hermetica is a DeFi platform focused on building innovative financial tools for the Bitcoin ecosystem. The company is committed to driving the growth and adoption of Bitcoin DeFi by providing secure, efficient, and user-friendly solutions. Hermetica's core product, USDh, is a testament to this commitment, offering a unique and compelling alternative to traditional stablecoins.
About the Investors
- UTXO Management: A leading investment firm focused on the Bitcoin and blockchain space.
- CMS Holdings: A prominent crypto investment firm with a diverse portfolio of blockchain projects.
- Ethos Fund: A venture capital firm investing in early-stage blockchain and cryptocurrency companies.
- Trust Machines SPV: An investment vehicle focused on supporting the development of the Bitcoin ecosystem.
- Newman Capital: A venture capital firm investing in disruptive technologies.
- Silvermine: A crypto investment firm focused on early-stage blockchain projects.
Compiled by CMO Intern team
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