We are thrilled to announce a partnership between Velar and Hermetica, set to kickstart Bitcoin-backed stablecoin liquidity within the Stacks ecosystem. 

As Hermetica launches its innovative stablecoin USDh on Stacks, Velar is honored to take on the role of the primary liquidity hub for this exciting new asset. This collaboration marks a significant milestone in our ongoing mission to enhance and diversify the DeFi landscape on Stacks.

Introducing USDh: The First Bitcoin-Backed, Yield-Bearing Synthetic Dollar

Before diving into the partnership details, let's explore what makes USDh a game-changer in the Bitcoin ecosystem:

What is USDh?

USDh is the first Bitcoin-backed synthetic dollar that yields up to 25%. It addresses a critical gap in the Bitcoin ecosystem by offering a dollar asset that is:

1. Fully backed by Bitcoin

2. Outside the fiat system

3. Yield bearing

4. Native to Bitcoin L1 and L2s

USDh allows users to hold dollars and earn yield without leaving the Bitcoin ecosystem - no banks, no fiat, just Bitcoin.

Partnership Highlights

1. USDh Launch on Stacks

Hermetica's USDh stablecoin is now making its debut on the Stacks blockchain, offering users a new, reliable option for stable value storage and transfers. This launch represents a pivotal moment for the Stacks ecosystem, introducing a fresh, Bitcoin-backed stablecoin designed to meet the evolving needs of DeFi users.

2. Velar: The Chosen Liquidity Hub

We're immensely proud to have been selected as the primary liquidity provider for USDh on Stacks. This partnership reaffirms our commitment to fostering a robust and diverse DeFi ecosystem. By leveraging our established infrastructure and expertise, we aim to ensure smooth, efficient liquidity for USDh from day one.

3. Inaugural Liquidity Pool: USDh <> aeUSDC

To kickstart this partnership, Velar is introducing a new liquidity pool pairing USDh with aeUSDC. This pool will enable seamless swaps between these two stablecoins, providing essential liquidity for USDh and creating new opportunities for traders and liquidity providers alike.

4. Exclusive Farming Rewards

In celebration of this partnership and to incentivize early adopters, Velar and Hermetica are offering an exceptional reward program. Users who add liquidity to Velar farming pools containing USDh will enjoy a 30x Hermetica points multiplier on their rewards. 

Additionally, 10,000 $VELAR tokens will be distributed daily as rewards for the USDh <> aeUSDC liquidity pool for the first month. After the initial month, the daily distribution will decrease to 5,000 $VELAR tokens for subsequent months.

Note: Users need to stake their LP tokens to earn $VELAR farming rewards. 

This tiered reward structure presents an exciting opportunity for yield farmers to maximize their returns, especially during the first month, and continue earning substantial rewards in $VELAR tokens thereafter. This approach aims to boost the initial attractiveness of participating in this new liquidity pool while ensuring sustained incentives for long-term liquidity providers.

Impact on the Stacks Ecosystem

This collaboration between Velar and Hermetica is set to have a profound impact on the Stacks DeFi landscape:

1. Enhanced Liquidity: By introducing USDh and providing robust liquidity through Velar, we're significantly increasing the overall liquidity within the Stacks ecosystem.

2. Greater Stability: The addition of another stablecoin option, backed by Bitcoin, helps to distribute risk and enhance overall stability in the market.

3. Increased Trading Options: With new trading pairs on the horizon, users will have more flexibility in their trading and investment strategies.

4. Attracting New Users: The combination of a new Bitcoin-backed, yield-bearing stablecoin and attractive farming rewards is likely to draw more users to the Stacks ecosystem, contributing to its growth and vitality.

5. Bitcoin-Native Yield: USDh introduces a new way for Bitcoin holders to earn yield without leaving the Bitcoin ecosystem, potentially attracting more Bitcoin enthusiasts to explore DeFi on Stacks.

What This Means for Our Users

For Velar users, this partnership opens up a world of new opportunities:

• Access to USDh, a new, reliable, Bitcoin-backed stablecoin with yield-bearing potential

• Enhanced liquidity for stablecoin trades

• Lucrative farming opportunities with the 30x Hermetica points multiplier and 10,000 $VELAR per day reward for the USDh<>aeUSDC pool on Velar.

• More trading pairs and options in the near future

• The ability to engage with Bitcoin-native yield products within the Stacks ecosystem

Looking Ahead

This partnership between Velar and Hermetica is just the beginning. As we move forward, we're committed to continuously expanding our offerings, improving liquidity, and creating innovative DeFi solutions on Stacks.

We invite our community to join us in welcoming USDh to the Stacks ecosystem. Whether you're a seasoned DeFi user, a Bitcoin enthusiast looking to explore yield opportunities, or new to the space, there's never been a better time to explore the possibilities that Velar and Hermetica are creating together.

Stay tuned for more details on pool launches, farming opportunities, and the rollout of new trading pairs. The future of Bitcoin-backed, yield-bearing stablecoin liquidity on Stacks is here, and it's brighter than ever!