Bitcoin is a trillion-dollar asset class.

It sits on corporate balance sheets, inside ETFs, and across institutional portfolios worldwide. Yet despite its scale and maturity, Bitcoin remains largely idle. 

Early attempts to change this offered high returns but relied on hidden leverage and counterparty risk. When markets turned, those models collapsed, costing users their principal. Newer approaches corrected for this by prioritizing safety and custody, but at the cost of meaningfully lower yields.

The lesson from both extremes is that yield without transparency burns capital, and transparency without yield leaves capital unproductive.

hBTC operates in the space between.

hBTC is Bitcoin that earns Bitcoin. 

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.

Profits from all three strategies are harvested back into Bitcoin and compounded into hBTC.

hBTC provides a simple path to BTC-on-BTC yield:

Users can redeem back to native BTC at any time.

Standard redemptions are subject to a 3-day cooldown, while an express option reduces the cooldown to 4 hours.

What differentiates hBTC is not the existence of yield, but how that yield is produced and controlled.

Leverage, delta, and yield-spread exposure are continuously monitored and rebalanced within strict, pre-defined ranges—keeping the strategy away from liquidation and tail-risk regimes.

hBTC deploys exclusively into market-neutral strategies, operating around a 50% target LTV with minute-level rebalancing, and fully de-risks by closing positions when yield spreads fall below defined thresholds.

Every basis point of dollar profits is automatically converted to Bitcoin to continuously maintain delta neutrality. 

A dedicated on-chain reserve fund, capitalized with 5% of daily rewards, serves as a first-loss buffer designed to offset periods of negative carry and adverse market conditions.

All activity occurs on-chain. Capital deployment, rebalancing events, reserve fund balances, and position adjustments can be observed in real time and independently verified on-chain and through Hermetica’s transparency dashboards. There are no black boxes or delayed disclosures. 

Yield is a byproduct of intentionally constrained and explicitly defined risk.

hBTC is a multi-strategy BTC yield system designed to source returns across Bitcoin capital markets. The product allocates across multiple yield drivers: 

Today, hBTC derives yield from Bitcoin-backed credit through Strategy’s STRC, Basis, and Stacks Dual Staking. Additional sources will be added over time within the same risk-managed framework.

hBTC is rolling out to our first users as we speak. Early LPs are already earning 4-8% BTC-denominated yield, with real-time transparency and institutional-grade risk controls, while retaining the ability to redeem back to underlying Bitcoin.

Access to hBTC is being released in limited cohorts.

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