hBTC achieves daily automatic compounding through yield strategies, supports fast withdrawals.
📌 hBTC Q&A: Frequently Asked Questions Summary
1️⃣ Core Details
@jakob_btc (HermeticaFi CEO) about hBTC
Compiling users' frequently asked questions into a thread.
hBTC is not a simple wrapped BTC, but a yield-generating BTC.
2️⃣ How does hBTC work
▸ Yield Structure
· Deposit BTC into a vault → borrow stablecoins like USDh against it
· Deploy into blue-chip strategies (Basis, Strategy STRC, Stacks dual staking)
· Convert generated yield back to BTC and return to hBTC holders
▸ Difference from Wrapped BTC
· Tokens like WBTC are purely representative tokens with no yield
· hBTC’s vault strategies increase BTC per share value
· Productive Bitcoin
3️⃣ Yield Distribution Method
· Automatic compounding
· Daily yield reflected in the Net Asset Value (NAV) of hBTC token
· No separate billing or restaking required
4️⃣ Deposits & Withdrawals & Fees
▸ Deposit
· Directly deposit native BTC or sBTC
· Issue hBTC based on NAV per share
· Deposit time: approx. 30 minutes based on 3 BTC confirmations
▸ Withdrawal Cooldown
· Standard withdrawal: 72 hours
· Express withdrawal: 4 hours
· Withdrawal time: approx. 80 minutes after cooldown, based on 8 BTC confirmations
▸ Fees
· Deposit: 0%
· Standard withdrawal: 0%
· Express withdrawal: 0.5%
· Hermetica shares profit only after users have earned it
5️⃣ Self-Custody Structure
· Assets move only via protocol smart contracts
· No centralized manager can arbitrarily move funds
· Governance changes are subject to a timelock
· No centralized custodian
6️⃣ Risk Management & Transparency
▸ Rule-Based Framework
· Key controls: leverage, delta exposure, interest spread
· Separate reserve fund operation
· "Risk management is the product"
▸ Transparency Dashboard
· Real-time disclosure of leverage, delta, daily rewards, live balance sheet
· Link: https://t.co/6cImB78Ez1
· "Trust, but verify" philosophy
7️⃣ Additional Resources
· Official documentation: https://t.co/lTd3KNsK09
· Additional questions will be taken in the thread with ongoing updates