Bitcoin trading protocol Velar announced it has forged a partnership with stablecoin developer Hermetica to introduce a stableswap pool on the Stacks Bitcoin Layer 2 network. Through this collaboration, Velar will contribute to liquidity provision to support the USDh pool, which is set to launch on Stacks’ platform.

“Hermetica’s USDh stablecoin is fast becoming a cornerstone of Bitcoin DeFi, giving Bitcoiners the ability to hold their BTC while using it to mint synthetic dollars and earn yield on their assets,” said Mithil Thakor, chief executive officer of Velar, in a written statement. “We’re delighted to work with the Hermetica team in creating the first USDh pool on Stacks, utilizing Velar’s advanced liquidity technology,” he added.

Hermetica is the developer of USDh, the first synthetic dollar backed by Bitcoin, which allows Bitcoin holders to earn up to 25% APR on their stablecoins without leaving the Bitcoin ecosystem. With the support of Velar, Hermetica aims to integrate USDh into the rapidly growing DeFi ecosystem on Stacks.

Velar’s technology is focused on enhancing Bitcoin liquidity and facilitating the launch of assets on Bitcoin Layer 2 networks. It offers substantial liquidity, enabling on-chain users to execute swaps efficiently at market rates, even for larger trades. Velar will work in partnership with Hermetica to ensure that optimal liquidity is available for the introduction of the USDh stableswap pool.

Hermetica’s USDh functions as a fully BTC-backed synthetic dollar, tracking the USD price by leveraging BTC alongside a short perpetual futures position. Users who stake USDh will receive liquid sUSDh, allowing them to earn rewards from funding payments with yields of up to 25%. The launch of USDh on Stacks will broaden access to this stablecoin and create new opportunities for users within the Bitcoin Layer 2 network.

Velar Unvills Bea Launch Of Velar Artha PerpDex   

Velar is a DeFi liquidity protocol designed to leverage the security and strength of Bitcoin through a Layer 2 agnostic strategy. By utilizing the Stacks blockchain and the Clarity smart contract language, it aims to combine Bitcoin’s foundational stability with the innovative features of DeFi. Its Velar Dharma acts as an automated market maker (AMM), allowing users to easily trade Bitcoin-based tokens through an intuitive interface with just a few clicks.

Recently, Velar announced the beta launch of its perpetual swaps decentralized exchange (DEX), known as Velar Artha PerpDex, on the hybrid Layer 2 network BOB. This launch represents the first effort to introduce on-chain perpetual markets within the Bitcoin ecosystem.

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