Hermetica Fi has revealed its plans to launch hBTC, a new bitcoin (BTC)-based product, designed to allow users to earn returns on their BTC without selling them. The initiative, whose implementation is scheduled for before the end of 2025, seeks to integrate the functionality of decentralized finance (DeFi) with the inherent security of the Bitcoin network.
hBTC works as an instrument that capitalizes on various sources of income within the DeFi environmentincluding grassroots arbitrage, lending markets, staking and liquidity provision in Automated Market Makers (AMM), as well as real world assets (RWA).
A key aspect of the design is that all profits generated are automatically converted back to the underlying asset, following the motto of “bitcoin in, bitcoin out.” This ensures that the user’s deposits remain backed by BTC throughout the process.
Jakob Schillinger, founder and CEO of Hermetica, explained that This combination of strategies could deliver an estimated total annual percentage yield (APY) between 7% and 10% for holders of the digital asset.
Schillinger noted that the historical performance of USDH, the mechanism behind the product, combined with the lending rates of DeFi platforms, would set a reasonable expectation for users.
The search for yield on bitcoin aligns with the strategies implemented by some investors who seek to obtain liquidity without parting with their bitcoin.
In this context, the investor known as Poor Millennial, in statements to CriptoNoticias, has highlighted the use of loans collateralized with bitcoin, maintaining a low level of risk. However, also warned that these leveraged products on BTC can erode the real value of the invested capital with the passage of time.