> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hermetica.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# How it Works

The USDh ecosystem is made up of two assets:

#### 1. USDh

A stablecoin consisting of Bitcoin coupled with a short perpetual futures position.

When Hermetica hedges Bitcoin with a short perpetual futures position, it creates a position that is price-stable in dollar terms.

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#### 2. sUSDh

A Bitcoin-native bond that generates up to 15% yield from funding rates.

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  <iframe src="https://drive.google.com/file/d/1e_siLnA3ZsvhrZT7TsjHnieKFmDjA2Oy/preview" title="Embedded content for How it Works" className="w-full h-96 rounded-xl" />
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<Info>
  For more information on yield, please refer to the [Yield Mechanism section](/usdh/how-it-works/yield).
</Info>

***

USDh and sUSDh are issued natively on Bitcoin L1 via Runes and Bitcoin L2 via Stacks.

You can buy USDh on the open market via common crypto marketplaces. [Click here](https://app.hermetica.fi/buy) to get started. More markets and product integrations are coming soon.

To access the yield, users [stake USDh](https://app.hermetica.fi/stake) and immediately receive the yield-bearing token, sUSDh.

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  <Card title="Security" href="/usdh/how-it-works/security">
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    <img className="block dark:hidden" alt="Stability" src="https://2201013687-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxp26OjT5H1o55M1QMDI4%2Fuploads%2F3cNWTMiWdHaYPp3FynnC%2FGitBook.png?alt=media&token=0d8349a8-a01f-4321-be0d-3fe678022b38" />

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  <Card title="Yield" href="/usdh/how-it-works/yield">
    <img className="block dark:hidden" alt="Yield" src="https://2201013687-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxp26OjT5H1o55M1QMDI4%2Fuploads%2FSvyEy2TWwH5IkkXCwIiA%2FSolution.png?alt=media&token=206bb1f4-4578-40b4-b6ce-1b1bd5c74a26" />

    <img className="hidden dark:block" alt="Yield" src="https://2201013687-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxp26OjT5H1o55M1QMDI4%2Fuploads%2FCU8FBMTQCDUHC48z154y%2FSolution(1).png?alt=media&token=1841819e-d3be-4a31-b822-091c06494f8e" />
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  <Card title="Backing" href="/usdh/how-it-works/backing">
    <img className="block dark:hidden" alt="Backing" src="https://2201013687-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxp26OjT5H1o55M1QMDI4%2Fuploads%2Fwine6seh93CWCFl0QV1y%2FGitBook%20-%20Final(2).png?alt=media&token=a4b6d428-5164-4370-9274-e56ab7996908" />

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  <Card title="Technical Primitives" href="/usdh/how-it-works/technical-primitives">
    <img className="block dark:hidden" alt="Technical Primitives" src="https://2201013687-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxp26OjT5H1o55M1QMDI4%2Fuploads%2FNHBpyiyZmUenEt7473vh%2FGitBook(1).png?alt=media&token=06bf5b67-fd1d-4ebe-86d9-d6046d18058f" />

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