USDh is now listed on Zest Protocol, the leading money market on Stacks. With this integration a number of exciting trades are now possible:
🔸 Borrow USDh against STX to get leverage
🔸 Deposit USDh to earn yield and as well as Hermetica and Zest points
🔸 Borrow USDh to stake on Hermetica to earn up to 25% APY
Depositing USDh on Zest comes with a number of perks:
- Yield
- 20x Hermetica Points per day
- 2x Zest Points per day
All you need to do is
- Buy USDh on Stacks
- Supply USDh through Zest Protocol
Let’s walk you through it:
How to Buy USDh
- Visit the “Buy” tab of the Hermetica App
- Connect your Stacks wallet
- Choose the asset and amount you want to swap
- Confirm the transaction
It’s that easy — you’re now a proud holder of Bitcoin-backed USDh! Onto step 2:
How to Supply USDh to Zest
- Visit the USDh page on Zest
- Connect your Stacks wallet using the button in the top-right corner of the app
- Click “Supply” in the “Available to supply” section
- Choose the amount and click “Supply”
- Confirm the transaction
That’s it. You’re now earning the supply yield as well as racking up 20x Hermetica Points and 2x Zest Points per day for every USDh you’ve supplied. You can sit back and let the dollars roll in.
Now if you want to take it to the next level, you can borrow USDh against your Stacks assets. This allows you to get leverage and increase your yield. Just keep in mind that if you borrow, you also expose yourself to liquidation risk.
How to Borrow USDh to Zest
- Visit the dashboard on Zest
- Connect your Stacks wallet using the button in the top-right
- Deposit collateral assets like STX, stSTX and DIKO
- Visit the USDh page on Zest
- Click “Borrow” in the “Available to borrow” section
- Choose the amount and click “Borrow”
- Confirm the transaction
Hermetica + Zest = The Delta-neutral Yield Trade
Since you’ve made it this far, let’s look at the trade that is on everybody’s mind. By leveraging the key functionality of both Zest and Hermetica you can set up a trade that earns attractive yield without taking risk on price.
Here’s how you set it up:
- Provide STX or stSTX as collateral to Zest
- Borrow USDh against it
- Stake USDh on Hermetica to earn the up to 25% APY staking yield
As long as your supply yield + the staking yield is lower than your borrow cost you’re earning a profit without any exposure to price. But be careful to manage that liquidation level effectively.
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Happy trading!
