HAY Destablecoin
HAY is an overcollateralized destablecoin backed by liquid staked BNB and is redeemable for $1 USD value of crypto currency. The Helio Protocol is able to ensure HAY is redeemable following the scenarios below:
Scenario 1: When HAY > $1, the supply of HAY will have to be increased.
Since HAY is at a premium, borrowers are incentivized to borrow more HAY to sell for other assets for arbitrage opportunities.
To reduce demand for HAY farming, Helio will reduce HAY farming rewards by decreasing HAY borrowing interest.
Scenario 2: When HAY < $1, the supply of HAY will have to be reduced.
Since HAY is at a discount, borrowers are incentivized to buy HAY from the market to pay back the debt.
To decrease HAY borrowing demand, Helio will increase HAY borrowing interest, which increases HAY farming rewards
Upon launch, HAY will be issued as a BEP-20 compatible token. Its use cases include the following:
Borrowing HAY
- Users who have deposit BNB on the Helio Protocol (CeVault) are eligible to borrow HAY
- The operations of borrowing HAY, repaying the loan and withdrawing the original collaterals are all governed by a set of smart contracts.
Liquidity Mining: Via 3rd party LPs on DEXes.
Payment: As means to transfer value, purchase goods & services.
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