Bitcoin yield only works if principal is preserved.

hBTC is built around a simple rule: never lose Bitcoin. Risk can’t be eliminated, but it is explicit, measured, and underwritable. 

Yield is a byproduct of taking clearly defined risk within tight controls.

hBTC operates under a multi-strategy framework, deploying capital across a curated set of institutional-grade return sources.

At launch, hBTC yield is generated from:

Bitcoin deposited into the protocol is posted as collateral in on-chain lending markets, against which the system borrows stablecoins.

The stablecoins are converted into USDh and deployed across two staking paths: sUSDh, which captures yield from Bitcoin basis, and stUSDh, which accesses STRC yield. An additional yield layer is sourced from Stacks Dual Stacking.

Every basis point of profit across all three strategies is harvested back into Bitcoin and compounded into hBTC.

hBTC’s first yield source is Bitcoin-backed credit through STRC.

As Bitcoin capital markets mature, a new asset class is forming around it: corporate credit backed by Bitcoin treasuries. STRC, issued by Strategy, is the largest and most liquid instrument in this category, with $8.5B in notional value outstanding.

STRC pays a monthly cash dividend at an annualized rate of 11.50%. Since launch in July 2025, STRC has seen seven consecutive rate increases with 30-day volatility held at approximately 1.7%. Strategy maintains a $2.25 billion USD reserve, covering more than 2.5 years of STRC dividends and interest payments, alongside 815,061 BTC in reserve, enough to cover 41 years of dividends.

hBTC gains STRC exposure through stUSDh, USDh's second liquid staking path.

stUSDh accesses STRC through Saturn's USDat. Saturn's execution and custody infrastructure is operated by category leaders Galaxy and Clear Street, with third-party proof of reserves attestations by Accountable.

Hermetica uses Copper Connect’s MPC wallet infrastructure to interact with Saturn without assets leaving qualified custody.

Bitcoin-backed basis adds a second yield source to hBTC.

Basis trading is a well-established relative-value strategy, used for decades in deep, liquid spot and futures markets across traditional finance and crypto.

sUSDh accrues daily yield from the funding payments generated by its short perpetual futures hedge, sourced across major perpetual venues including Binance, Bybit, OKX, and Bitget.

USDh backing assets are held with institutional-grade custodians, and trading is conducted only via Copper ClearLoop and Ceffu MirrorX—off-exchange settlement networks that keep collateral in custody and materially reduce exchange counterparty exposure.

For additional legal and operational assurance, the BTC held with Copper is placed in a bankruptcy-remote English trust structure. Hermetica publishes monthly attestations from custodians verifying custody of all assets backing USDh.  Current and historical attestations are available on the Transparency Dashboard.

Operating track record matters: this system has run in production for 21+ months with no security incidents and no sustained periods of negative funding, including through stress events such as the February 21, 2025 Bybit security incident and the October 10, 2025 flash crash.

Over the past year, the strategy generated positive yield on 307 out of 365 days (84%), with an average annualized yield of 10.94%.

Beyond basis, hBTC integrates Stacks Dual Stacking, which earns BTC-denominated yield via Stacks’ Proof-of-Transfer (PoX) consensus mechanism, where Bitcoin paid by miners is distributed to participants securing the network.

PoX has been live since January 2021 and has distributed 4,200+ BTC to network participants. Dual Stacking builds on this foundation by allowing sBTC deployed into DeFi to earn an enhanced share of PoX rewards.

By deploying BTC through hBTC, deposits are eligible for the maximum Dual Stacking reward multiplier, increasing BTC-denominated rewards to up to ~4% APY.

Yield varies with market conditions; the structure does not.

hBTC is:

🔸 Self-custodied
🔸 Transparent and verifiable
🔸 Risk controlled

hBTC is live, with access opening in cohorts. 

If your mandate is BTC-denominated yield with transparent, rules-based risk controls, the highest-leverage next step is to request access for the next allocation window.