# USDh Launches as First Bitcoin-Backed Dollar Offering 25% Yield By Sheena Jordan Canonical URL: https://www.tokenpost.com/news/business/11729 Published: 2024-05-08T04:18:31.000Z Updated: 2024-05-08T04:18:31.000Z Section: Business > In a groundbreaking development in Bitcoin-native decentralized finance (DeFi), Hermetica has announced the launch of USDh, the first synthetic dollar backed by Bitcoin with a promising yield of up to 25%. Set to debu… In a groundbreaking development in Bitcoin-native decentralized finance (DeFi), Hermetica has announced the launch of USDh, the first synthetic dollar backed by Bitcoin with a promising yield of up to 25%. Set to debut in June, this innovative financial product aims to redefine liquidity and investment strategies within the Bitcoin ecosystem. USDh Set to Transform Bitcoin DeFi with a Staggering 25% Yield Starting June According to [Cointelegraph](), Hermetica has created the first Bitcoin-backed synthetic US dollar with yield-generating capabilities, marking the latest milestone in Bitcoin-native decentralized finance (DeFi). The new synthetic dollar, USDh, will be released in June and will offer users payouts of up to 25%, according to a statement shared with Cointelegraph by Hermetica. According to Jakob Schillinger, founder and CEO of Hermetica Labs, the new synthetic dollar will allow Bitcoiners to hold and earn a yield on their US dollars without relying on the banking system or being exposed to non-Bitcoin-related products. "USDh will play a pivotal role in bringing increased liquidity and new use-cases to Bitcoin DeFi, allowing Bitcoiners to trade, lend, and transact in a dollar asset that is fully backed by Bitcoin," Schillinger informed Cointelegraph. Hermetica is a Stacks-native DeFi protocol for Bitcoin that is part of a more significant movement called Bitcoin DeFi (BTCFi). This movement intends to provide DeFi features to the world's first blockchain network. The introduction of the first Bitcoin-backed synthetic dollar comes two months after Ethena's USDe [debuted]()with a 27.6% yield for investors, raising significant concerns about the protocol's viability. USDh Promises Sustainable 25% Yield Amid High Returns in Bitcoin Futures Markets [TokenPost]() | info@tokenpost.com ## Links in this article - [Cointelegraph](https://cointelegraph.com/news/hermetica-usdh-bitcoin-backed-synthetic-dollar?fbclid=IwZXh0bgNhZW0CMTAAAR16XmLgsNxbg8QvBRT5Xqy64OkM-T6iIeY5f6SdFIvPw9mjUySDu4G91Rs_aem_AWHHrZaWIx440FwV4jNtbehQdXsmEOc54fVZ9KIkmjhaXWA3V9qDvEj8As7g--YWQCEfd5L24Po-DyT74uZl014Q) - [debuted](https://cointelegraph.com/news/ethena-usde-27-yield-concerns) - [TokenPost](https://www.tokenpost.com)