sBTC is here — Bitcoin DeFi just got even better!sBTC is here — Bitcoin DeFi just got even better!
With sBTC included as a collateral asset on Zest Protocol, the leading money market on Stacks, you can use sBTC to combine Zest’s lending market with USDh’s staking yield.
It’s simple:
🔸 Supply sBTC as collateral on Zest
🔸 Borrow USDh from Zest
🔸 Stake USDh on Hermetica’s app to earn up to 25% APY
Let’s break it down step by step.
Step 1: Supply sBTC as Collateral to Zest
Supply sBTC to Zest to gain liquidity without selling your Bitcoin. Here’s how to do it:
- Visit the sBTC page on Zest Protocol
- Connect your Stacks wallet using the button in the top-right corner
- Click “Supply” under “Your balances”
- Select the amount of sBTC you want to supply and confirm the transaction
Your sBTC is now working for you as collateral and you’re earning a supply yield!
Step 2: Borrow USDh Against Your sBTC
Borrow USDh on Zest against sBTC without the need to sell any Bitcoin collateral. Here’s how:
- Deposit sBTC collateral (you did this in Step 1)
- Go to the USDh page on Zest
- Connect your Stacks wallet using the button in the top-right corner
- Click “Borrow” under “Your balances”
- Choose the amount of USDh you want and click “Borrow” to confirm the transaction
You’ve now borrowed USDh against your sBTC.
Step 3: Stake USDh for Up to 25% APY
Now for our favorite part. Take your freshly borrowed USDh and put it to work on Hermetica’s app:
- Visit the “Stake” section of our app at app.hermetica.fi/stake
- Connect your Stacks wallet using the button in the top-right corner
- Enter the amount of USDh you want to stake
- Confirm the transaction
Congratulations! You’re now earning up to 25% APY on your staked USDh.
If your supply yield plus the staking yield exceeds your borrow cost, you’re generating a profit with no exposure to price volatility.
However, it’s crucial to monitor and manage your liquidation levels on Zest carefully.
In addition to the APY from staking, you are earning both Zest and Hermetica points 💪
🔸 2x Zest points on the value of your sBTC
🔸 2x Hermetica points on the value of your sUSDh
More Ways to Earn
And there are more options for you to earn Hermetica points across Stacks DeFi:
🔸 Hold USDh for 5x Hermetica Points per day
🔸 Provide USDh liquidity to Bitflow for 30x Hermetica Points and 1x Bitflow Points per day, and fees earned from trades
🔸 Provide USDh liquidity to Velar for 30x Hermetica Points per day, a portion of $VELAR, and fees earned from trades
🔸 Supply USDh on Zest to earn 20x Hermetica Points, 2x Zest Points, and supply APY
Don’t Miss What’s Next
With sBTC here, Bitcoin-powered DeFi is on the rise. Stay in the loop by following @HermeticaFi on X and subscribing to our weekly newsletter at hermetica.fi/subscribe.
