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Yield mechanism

hBTC is designed to generate BTC-denominated yield by deploying into on-chain DeFi strategies and systematically converting all realized profits back into Bitcoin.
Yield is market-dependent and may vary over time.

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Yield sources

hBTC may source yield from a range of DeFi primitives, including:
  • Basis strategies
  • Lending markets
  • Staking
  • AMM liquidity provision
  • Real-world assets (RWAs)

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Launch configuration

At launch, hBTC yield is primarily generated from:
  1. Basis strategies, using USDh as the core yield mechanism
  2. Stacks Dual Stacking, leveraging Stacks Proof-of-Transfer (PoX) consensus mechanism
Additional strategies may be introduced over time as the protocol expands.

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Strategy governance and expansion

Hermetica continuously evaluates additional on-chain yield opportunities across DeFi. New strategies are introduced only after completing technical diligence and risk review.
Any strategy changes are announced in advance and take effect only after the governance timelock has elapsed.