Hermetica Fi has revealed plans to launch hBTC, a new Bitcoin (BTC)-based product designed to allow users to earn money without selling their BTC. The initiative is scheduled to be implemented by the end of 2025 and aims to integrate the capabilities of decentralized finance (DeFi) with the inherent security of the Bitcoin network.
hBTC works like this A means of leveraging various income sources within the DeFi environmentincluding grassroots arbitrage, lending markets, staking and liquidity provision. automatic market maker (AMM), and Real World Assets (RWA).
A key aspect of the design is that all profits generated are automatically converted into the underlying asset, following the motto “Bitcoin in, Bitcoin out”. This ensures that user deposits are backed by BTC throughout the process.
Jakob Schillinger, founder and CEO of Hermetica, explained: This combination of strategies can result in an estimated annual gross yield (APY) of 7% to 10%. For owners of digital assets.
Schillinger pointed out that the historical performance of USDH, which is the mechanism behind the product, combined with the lending rates of DeFi platforms, can give users reasonable expectations.
The search for Bitcoin yield is consistent with the strategy some investors follow to gain liquidity without leaving their Bitcoin.
In this regard, the investor known as Poor Millennial, in a statement to CriptoNoticias, emphasized the use of Bitcoin-backed loans while maintaining a low level of risk. However, also Warned that these BTC leveraged products could erode the real value of invested capital Over time.
