1. What is Helio Protocol?
Helio Protocol is a stablecoin lending and liquidity staking protocol. HAY is a decentralized stablecoin on the BNB Chain and is the only over-collateralized decentralized stablecoin on Helio. HAY is lent out at a certain ratio through the Helio Protocol, which is over-collateralized by BNB and BUSD and supported by a liquidation mechanism. The over-collateralization mechanism ensures that there is always enough collateral to support the value. Even if the price of the collateral fluctuates, the liquidation mechanism of Helio Protocol can still guarantee the full solvency of HAY.
2. To what extent can HAY (over-collateralized stablecoin) avoid the risk of decoupling?
When staking BNB in Helio Protocol, you can lend HAY equivalent to 66% of the collateral value. The 66% ratio is significantly lower than other lending protocols, but the 34% buffer range can better protect the security of the protocol. , HAY’s relative stability and user assets not being liquidated. On the other hand, if the price of BNB falls and the LTV ratio rises to the upper limit, the liquidation process will be triggered. Unlike the unsustainability of UST's left-foot-right-foot algorithm stablecoin, essentially the mechanisms of HAY and DAI are similar, but HAY is based on a more Decentralized assets are used as collateral to make it more decentralized. At the same time, HAY established a casting limit in the early stage, which is currently 5% of the total market value of BNB, which can ensure the value anchoring of HAY to the greatest extent and avoid the risk of decoupling.
Benefits of Overcollateralization
Over-collateralization ensures that the value of HAY is anchored to the US dollar. Once HAY deviates from the value of the US dollar too much, there will be arbitrage opportunities in the market. You can buy HAY in the market at a price lower than 1 US dollar, repay and destroy HAY, and then obtain excess collateral. This is equivalent to discounting the debt, and HAY will gradually return to anchoring the US dollar in the process. steady state
3. What are the benefits of using HAY?
It can be seen from the data that as of March 2023, the total collateral value of HAY across the entire network is 63 million U.S. dollars, and the total amount of HAY lent is 21M equivalent U.S. dollars of HAY. The over-pledge rate is 2.94, and the pledge rate is at a very safe level. interval
The main reason for blockchain users to use stablecoins is to reduce the risk of price fluctuations of cryptocurrency. For example, in a bear market, by converting cryptocurrency into HAY stablecoin, value storage can be realized, or retail transactions, purchasing goods, and using streaming payments to pay wages can be realized. In this way, HAY is gradually integrated into the BNB Chain ecosystem. .
Another major application scenario of HAY is DeFi staking mining. HAY has many application scenarios in DeFi. At present, in addition to staking mining to obtain income in Helio Protocol, you can also use Wombat, Magpie, Ellipsis.finance, Quoll Earn income by staking or depositing coins for mining on DApps such as Finance and Thena.
IV. Project Security Review
Helio Protocol has passed multiple external audits and security assessments: Certik, PeckShield, SlowMist, and Veridise have audited Helio Protocol five times to ensure the security of smart contracts to the greatest extent.
5. How to obtain HAY?
The first method of obtaining: Obtain HAY by staking BNB or BUSD
Log in to the official website and link your wallet
Click to enter the "borrow" page
Pledge an appropriate amount of BNB tokens
Click "Borrow" to prepare to borrow HAY
Lend appropriate amount of HAY
The second acquisition method: stake CAKE tokens in PancakeSwap’s syrup pool to obtain income settled in HAY. The rate of return at the time of writing is 98.6%
6. How to earn money from the lent HAY?
1.Staking
The daily yield of HAY single-coin staking remains at around 7%
2.Farming
Form a stable LP to earn income: Currently, you can form a stable LP with BUSD in PancakeSwap, Ellipsis.finance, Thena.fi, Magpie, Quoll, and Wombat.exchange to earn income. Stable LP is relatively stable and can well avoid impermanent losses and obtain returns without basic risk.
In addition to staking and liquidity mining, HAY can also be used in the field of payments, purchasing goods and services, medium of exchange, and all use cases for current and future stablecoins. Currently, Okse Wallet & Card supports payment using HAY
3.BNB Liquidity Staking
In a bear market, drastic price fluctuations become normal, and no one can always accurately predict short-term market conditions. Most traders mainly hoard coins and no longer trade. While hoarding coins, idle BNB can be considered to be deposited in Helio Protocol and borrowed for HAY, in order to obtain the maximum passive yield by forming a stable LP.
7. Heilo will promote the vigorous development of the BSC chain ecology
In the blockchain ecosystem, stablecoins have a wide range of application scenarios. By building a native decentralized stablecoin on the BNB Chain, HAY will greatly enrich the ecological development and future needs of the BNB Chain. This is fundamentally different from packaging stablecoins from other chains for cross-chain use. Using cross-chain DAI on the BNB Chain actually promotes the ecological development of DAI in Ethereum, not the BNB Chain. Therefore, having a native over-collateralized stablecoin is an important direction for the BNB Chain.
The above text is only for reference for blockchain knowledge learning and research, and is not any investment advice.
