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as of 17/06/2023
Hatom serves as MultiversX's first liquidity protocol, with the distinct purpose of energizing the DeFi landscape through a diverse range of products. We are pioneering a comprehensive ecosystem aimed at drawing liquidity by leveraging organic and sustainable products, thereby circumventing dependence on transient incentives or liquidity mining.
Our initial endeavour has been to develop a robust, non-custodial Lending Protocol that forms the bedrock of our suite of offerings. In addition, we have created an array of essential infrastructure modules, such as an indexer, price oracle, and guardian, amongst others, to ensure the protocol's safety and stability.
Subsequent to this, we have achieved the successful development of a complete Liquid Staking protocol. To supplement these protocols, we are introducing an Over-collateralized Stablecoin, named "USH". This Stablecoin, minted through our Lending Protocol, will be the first native Stablecoin within the MultiversX Network.
Crucially, our protocols are not mere forks. Instead, they embody original solutions, engineered from scratch. Each has been methodically developed, designed specifically to cater to the requirements of the ecosystem and the broader DeFi landscape. Every protocol we launch has been subjected to thorough audits to ensure their security and robustness. This combination of innovation and rigorous due diligence reinforces our commitment to providing pioneering and reliable solutions in the world of decentralized finance.
Alongside the launch of our Lending Protocol and Liquid Staking, multiple projects will be deployed with the intent to consolidate their position and sustain their momentum, thereby augmenting their overall Total Value Locked (TVL) within the DeFi ecosystem on the blockchain.
Hatom Ecosystem Flowchart:
Please join our Hatom community on Discord⋮Telegram. Hatom’s team and its community members will be glad to help you if you don’t find what you are searching for here.
Disclaimer:
Please note that this is a beta version of the Hatom website, still undergoing final testing before its official release. Also, note that this "Docs section" is still ongoing changes and that this version was only made available to conduct testing, obtain feedback and give our users a glance at the upcoming platform. A final version will be published after the Mainnet launch of the Ecosystem.
Our Github page is in private mode for security reasons and will only go public once all audits, and risk assessments are completed.
as of 17/06/2023
Hatom Lending Protocol is a decentralized lending and borrowing platform operating within the MultiversX Network. It employs algorithmic methods to facilitate seamless transactions between market participants.
Liquidity providers, or suppliers, contribute assets to the market, thereby earning interest on their deposits. Simultaneously, borrowers are able to secure loans, adhering to a collateralized model to ensure secure transactions and minimize risk.
We are pleased to announce that a Devnet version of the Lending Protocol has been successfully deployed and is now open for testing. This serves as an opportunity for users to familiarize themselves with the platform's offerings and operations prior to its full launch.
Disclaimer: Hatom Lending Protocol is open-source, and all smart contracts will be publicly available. Still, it's forbidden to fork it for commercial use, as Hatom Lending Protocol is protected and subject to a "Business Source License," a trademark of MariaDB Corporation Ab.
as of 17/06/2023
This section is aimed at lenders and borrowers. It regroups the different keywords you may find in the Hatom protocol and their definitions.
We refer to the Money Market as any token listed in a lending network. A Money Market can be understood as a pool of tokens to which lenders provide liquidity and from where borrowers take liquidity.
The Utilisation Rate is a percentage that shows how much of a Money Market’s total value is being borrowed. It can be calculated by dividing the (Total Value of Assets Borrowed) by (Total Value of Assets Supplied).
The Collateral Factor is expressed as a percentage. It’s a multiplier used to calculate the maximum amount you can borrow against your collateral. The Collateral Factor differs from one token to another. For example, if EGLD has a collateral factor of 80%, for every $1,000 of EGLD supplied, you can borrow $800 of any available token.
Borrow Limit Used is a percentage that indicates the ratio amount you currently have borrowed to the total amount you are allowed to borrow. For example, if you can borrow a maximum of $1,000 (as determined by the Collateral Factor of the supplied token), borrowing $750 would equate to 75% of the Borrow Limit Used.
The maximum of tokens that can be borrowed from a MM (best thought of in terms of a percentage of tokens in circulation, e.g., If there are 100,000,000 tokens in circulation, then a BorrowCap of 5,000,000 is 5%)
The Liquidation Factor is a percentage that indicates the value at which Liquidation occurs and can be thought of as the ratio between the supplied value and the borrowed value. For example, if a user deposits EGLD and has a Liquidation Factor of 75%. When the value of the borrowed positions reaches 75% of the supplied EGLD, a Liquidation can occur. The Liquidation Factor differs from one token to another.
The Liquidation Limit Bar is a percentage that indicates the ratio of your borrowed value to the borrowed value that would trigger Liquidation. It tracks how close your borrow position is to being liquidated. When the Liquidation Limit attains 100%, you can be liquidated. For example, if a user supplies $1,000 EGLD as collateral and has a Liquidation factor of 70% (so the user’s position gets liquidated when his borrow value equals $700). If he borrows 1 HTM worth $350, his liquidation limit bar would be 50% ($350 Borrowed/$700 Liquidation Value.)
A Liquidation Incentive is a cut in price at which a Liquidator receives a user’s collateral when completing a liquidation. This discount encourages Liquidators to complete Liquidations to keep a healthy state.
The portion of borrower-paid interest (per second) to the Reserve. The remainder of the borrower-paid interest goes to the MM’s suppliers.
A Close Factor is a percentage that indicates the amount of a position that a Liquidator can close at one time when performing a Liquidation.
The maximum value (in USD) can be used as Collateral to borrow against. To be used as Collateral, the total active Collateral in the said asset must be smaller than ActiveCollateralCapUSD.
The Supply APY is a percentage that reflects the amount of interest a user would earn over one year for supplying tokens. On the other hand, The Borrow APY reflects the interest the borrowers pay for borrowing tokens.
HTokens are issued to lenders after supplying assets to a lending network. HTokens are exchanged for the underlying asset when users wish to withdraw their supplied assets.
The Token that can be lent/borrowed in the MM.
The number of Underlying Tokens held by the MM. The balance increases whenever tokens are deposited into the MM and decrease whenever tokens are borrowed from the MM.
The total amount of Underlying Tokens that the MM has set aside as a protocol fee. This amount increases as borrowers pay interest and decreases when the admin withdraws these tokens. The Reserve can be used, among other things, as an insurance fund to cover the bad debt incurred by the MM.
as of 01/04/2023
This section presents the dynamics of all the fundamental variables at the Money Market.
Most numbers are represented as a mantissa, an unsigned integer scaled by 1 * 10 ^ 18, to perform basic math at a high level of precision.
The Money Market total borrow dynamics is governed by the following differential equation:
Which can be translated to the following difference equation if we apply the explicit Euler discretization scheme:
Each Money Market tracks the total borrowed amount. However, each Smart Account must track the account’s borrowed amount. In that context, we can also track an Interest Rate Index given by:
In other words, the quotient among indexes define the well known discount factor:
such that:
Finally, notice that the borrows increase or decrease at specific time points depending on loans being taken or repaid. These two scenarios imply that the total borrows present discontinuities at such time points.
A fraction of the interest generated by the loans go to the Protocol Reserves. In this context, the Reserves are ruled by the following differential equation:
Finally, the supply rate is given by:
The protocol will implement an interest bearing token in order to distribute the accrue interest from borrowers among lenders (similar to Compound cTokens). The token will have an exchange rate with respect to the Money Market or pool underlying given by the following equation:
where
as of 17/06/2023
Lending is the process of supplying tokens to a pool. In exchange for giving liquidity to this pool, users will gain interest in the tokens they have deposited.
The returns will also be increased with the additional rewards, made possible by the incentive strategies put in place by the Hatom team.
There should be enough liquidity (not borrowed) to be able to withdraw. If there isn’t enough liquidity, you would need to wait for more liquidity to be deposited from suppliers or repaid by borrowers.
To add collaterals, you need to go to the "Collateral" Pop-up in the supplying section, click on the "Add" button, select the amount you want to add as collateral and confirm the transaction in your wallet.
You can also remove an asset from being used as collateral by going to the "Collateral" Pop-up in the supplying section, clicking on the "Remove" button, selecting the amount you want to remove from being used as collateral, and confirming the transaction.
You can completely remove an asset from being used as collateral if your asset is not actively being used to borrow.
When you withdraw your deposited tokens, you will receive a higher amount than the amount you started with, proportional to the token’s APY.
For example, if you deposit 10 EGLD with an average APY of 7%. You will notice that your wallet contains 10 EGLD worth of hEGLD in it. Once you withdraw your EGLD after one year, you'll return the hEGLD and receive 10.7 EGLD (your original 10 EGLD plus the 7% APY).
They are at the core of the lending protocol as they are minted or burned whenever a user supplies or withdraws a crypto asset.
The cash represents the availability of Underlying in the Money Market. It is discretely updated at every of the following interactions: deposits, withdrawals, loans requests and loan repayments.
With initial condition Notice that this index is just the dynamics of a borrow of one unit. This is what is usually called the Money Market equation. This index can be use to update any borrowed amount at time to any point in time such as:
In which represents the Reserve Factor, i.e. the fraction of the interest that goes to the Protocol Reserves. Notice that this equation can be discretized in a similar fashion as we did with the total borrows.
Finally, a portion of the liquidation incentive being paid to liquidators will probably be redirected to the Protocol Reserves. This means that might increase and present a discontinuity at liquidation time points.
The borrow and supply rates are defined through a mathematical model that relies on fixed parameters and the utilization factor. At any point in time, the Money aMrket utilization factor is defined as:
Where represents the total borrowed amount and is the amount of underlying liquidity available, given by:
In which is the available cash and are the Protocol reserves. Nowadays, the state of the art model is a piecewise linear model with an optimal utilization.
At this point, it is important to discuss some edge cases. When there are no borrows, i.e. , the utilization is zero. On the other hand, when liquidity is zero, we cap the utilization as the first utilization that yields the maximum borrow rate, such that:
In which represents the token total supply and with an initial condition . Lenders will receive these tokens when they deposit underlying into the pool. On the contrary, they will have to redeem back those tokens in exchange for more underlying than what they have previously deposited. The conversion is performed as follows:
Where and represent underlying and token amounts respectively.
We might need to distribute rewards either to incentivize the use of our Money Markets or for yield in our safety modules. For that purpose, we propose a rewards mechanism based on a speed of rewards (an amount of tokens being distributed per second for all beneficiaries) and the fraction of ownership for each individual account. Namely, the total amount of tokens being distributed as rewards per is:
In which is the speed of rewards. An account gets rewards based on its supplied, borrowed or staked amount and the total amount being supplied, borrowed or staked:
In which is the account’s rewards, is the account supplied, borrowed or staked amount and is the total supplied, borrowed or staked amount. This previous equation can be written as:
can be considered as the price of an index, stock or share. This allows the account’s rewards computation to be performed as the amount of shares times the share price. This trick decouples the problem and requires re-computing only the index price at each protocol interaction but does not require updating rewards for all accounts at all interactions (these kinds of loops are computationally prohibited in smart contracts development). Now, we can implement the same discretization scheme as before, such that:
Notice that the times are a subset of times . In other words, a particular account needs to be updated at a given date while the index price is updated at all protocol interactions .
This earned interest comes from the users who pay interest to tokens.
Lenders can withdraw their supplied tokens at any time (as long as they aren’t being used as collateral to tokens and not all the tokens are being borrowed). There is no withdrawal fine or time lock.
Go to the supplying section on the and select the asset you want to deposit. Choose the amount you wish to deposit and confirm your transaction. Once the transaction is approved, your deposit will be successfully registered, and you will receive a receipt token called that accrues interest following the APY of its respective money market.
holders receive earnings that evolve following the market conditions based on the interest rate paid on loans - suppliers share the interests paid by borrowers corresponding to the average borrow rate times the utilization rate. The higher the reserve utilization, the higher the yield for suppliers.
Each asset has a supply and demand market; each has its own APY (Annual Percentage Yield), which evolves with time. You can find more information about each market on the page.
Note that: If you want to learn more about HTokens, please visit: .
There is no minimum or maximum amount to deposit, which means you can deposit any amount you want. Keep in mind that even though the has low fees compared to other networks, for really low amounts, the transaction fee of the process might be higher than the expected earnings. It is recommended that you consider this when depositing very low amounts.
To withdraw, you need to go to supplying section on the , select the market of your deposited asset, and click on «Withdraw». Select the amount you want to withdraw and confirm the transaction. You can also use your as liquidity without withdrawing.
In the , you can select the exact amount you want to use as collateral from your supplied assets.
Note that: You need to be careful not to put your position in an unhealthy state when removing an asset from being used as collateral, as you may be subject to .
After depositing your tokens, the pool will mint and credit you. These prove that you have supplied assets to Hatom protocol. The system will ask for those back once you try to withdraw your assets from the supply side.
APYs in Hatom are floating and not fixed. Rates get updated and can fluctuate within short periods. Rates received by lenders are determined by the rates that the borrowers pay.
can be considered receipt tokens provided to suppliers upon depositing crypto assets to the protocol.
Every has a unique exchange rate that increases over time, making them exchangeable to a superior amount of their underlying asset. However, the numbers of hToken in the user’s wallet remain the same.
Each has its . And any action performed by a user, whether it be supplying, withdrawing, borrowing, repaying, or liquidating a position, is completed through interacting with an smart contract.
as of 17/06/2023
Liquidation is the process of repaying a borrower’s interest rate on their behalf in exchange for a fragment of their Collateral. Liquidators are incentivised to continuously look for loans eligible for liquidation to keep a lending network healthy and prevent bad debt.
A Liquidation penalty (or Liquidation Incentive) is a cut in price at which a liquidator receives a user’s collateral when completing a liquidation. This discount varies for each asset, encouraging liquidators to complete Liquidations to keep a healthy state.
You can find the Liquidation penalty of each asset by going to the "Markets" section and clicking on the asset.
The amount of a position that can be Liquidated at one time is set at 50% in the Hatom Protocol (the Close Factor), which means that only a fragment of the borrower’s debt is repaid and not all of it.
For example, a position where you have supplied $2,000 USDC and took a loan of $800 in EGLD is eligible for Liquidation. Suppose the Liquidation Incentive for USDC is 10%.
A Liquidator will come and pay on your behalf up to $400 in EGLD (50% of what you borrowed). In return, the Liquidator will get $440 of your USDC: $400 USDC + $40 USDC for the Liquidation Penalty.
Your new position after the Liquidation: Supplied Value - $1,560 in USDC, Borrowed Value - $400 EGLD.
To avoid getting Liquidated, the value of your Collateral has to be worth sufficiently more than your loan.
Here is some advice that can help you avoid getting liquidated:
Try not to Borrow the maximum amount.
Check on your position frequently to ensure it remains in good health.
Use a Stablecoin in either the deposited or borrowed asset to reduce the number of variables you have to monitor.
Preparing a repayment plan before taking a loan to be prepared for any scenario.
If you are still at risk of Liquidation after taking all the safety measures there are two things you can do:
You can pay back your loan or a fragment of the amount you have borrowed.
You can deposit more Collateral, thus decreasing your loan to value ratio.
Anyone can participate in the Liquidation Ecosystem. It is a competitive market, and some liquidators even develop their solutions and bots to be the first to liquidate positions and receive the Liquidation Bonus.
as of 17/06/2023
The Hatom Price Oracle is a sophisticated infrastructure comprising of Oracle Bots that push prices to a Price Aggregator Smart Contract (akin to the Chainlink oracle system). This contract subsequently renders these prices accessible on-chain, facilitating their usage by the Lending Price Oracle Smart Contract to ensure reliable pricing when users interact with the Lending Protocol.
Its primary role is to compile price submissions from whitelisted Oracles. These Oracles are tasked with extracting prices from external sources like well-established exchanges and forwarding this data to the Price Aggregator. Upon reaching a certain number of submissions (which is fewer than the total number of Oracles), the Price Aggregator calculates a new median price and announces it. In a manner similar to Chainlink's price feeds, Oracles contribute prices in "rounds," which generally take place every half hour to one hour. However, if a sudden price change surpasses a predetermined "Threshold", Oracles are expected to resubmit a price, irrespective of the duration since the last submission.
The Hatom Oracle Smart Contract is responsible for supplying prices to the Controller Smart Contract, ensuring all assets can be represented in a common unit or currency (in this case, EGLD). To achieve this, the Oracle Smart Contract employs the following sources of information:
xExchange DEX Price Feeds, comprising the current price and the time-weighted average price (also known as the Safe Price) of the specific asset.
When a price is requested from the Hatom Oracle Smart Contract, it fetches the safe price from the xExchange DEX Price Feeds, and compares it to the price offered by the Price Aggregator Smart Contract. If the price difference falls within an acceptable range, the price from the Price Aggregator Smart Contract is deemed valid and relayed to the Controller Smart Contract. If the price difference exceeds a certain limit, the following occurs:
If the initial tolerance is Surpassed: The price is deemed invalid and the Hatom Oracle Smart Contract issues an event to alert the community that the first anchor tolerance has been exceeded. It then sends the most recent valid price to the Controller Smart Contract. A subsequent call to the Hatom Oracle Smart Contract will Fail unless the prices return within the tolerance range.
If the final tolerance is Surpassed: The price is deemed invalid and the Hatom Oracle Smart Contract issues an event to alert the community that the last anchor tolerance has been exceeded. It then sends the most recent valid price to the Controller Smart Contract. The Oracle is suspended, and all subsequent price requests will Fail unless there's a manual intervention by the Guardian to Unpause the Oracle.
The Guardian Bot has been specifically designed to closely monitor the Lending Protocol. Its role is to track price feeds from the Price Aggregator and the Safe Price, compare them, and identify any irregularities or discrepancies in the prices of the integrated assets. The Bot will also autonomously pause the Protocol in such occurrences and notify us for additional monitoring and necessary action.
These bots operate autonomously and are containerized, serving the purpose of submitting prices to the Price Aggregator Smart Contract. Each Bot possesses a unique private key, and the corresponding public key is granted Oracle status on the Price Aggregator Smart Contract whitelist, thereby permitting it to introduce new prices. Each Bot maintains a specific set of price providers that might intersect with those of other Bots. The Oracle Bots carry out two types of scheduled tasks: the "Heartbeat Task" and the "Threshold Task". The Heartbeat Task runs less frequently and operates according to a timeframe set by the round time of the Price Aggregator Smart Contract, ensuring regular price submissions. Conversely, the Threshold Task executes more frequently, retrieving prices from assigned sources (such as Binance, Cryptocompare, HitBTC, , Kraken, etc..), compares them to the previously submitted price, and resubmits the price if it exceeds a predefined threshold.
as of 17/06/2023
The addition of new Tokens to the Hatom Ecosystem is a community-driven process that underscores our commitment to decentralization. It typically begins with the discussion of a Proposal through social media platforms.
In this Proposal, several Tokens that could be added to the platform are discussed. After a Proposal has been created and validated, it is then put forward to the Community for voting. This process ensures that the listing of new Tokens is in alignment with the interests and preferences of our users.
The Community members, holding staked HTM Tokens, can cast their votes to decide if they wish to list the proposed Tokens. This mechanism places the decision-making power directly into the hands of our users, allowing them to shape the future of the Hatom Ecosystem. Ultimately, only the Tokens that are secure and viable to be listed, and that receive the most Community support will be considered to the Platform, expanding the array of assets available for lending, borrowing, and staking within the Hatom Ecosystem.
as of 17/06/2023
This segment will look at few examples how a user can use a Lending Protocol to his advantage. First, reading the Lending, Borrowing, and Liquidations section is essential to understand better the risks involved.
as of 18/06/2023
The act of shorting a token is betting against it; another way to explain it is that you can make a profit if the value of the token decreases.
To short EGLD, you can supply USDC as Collateral and Borrow EGLD against it. If someone Borrows 10 EGLD, they would then sell the 10 EGLD for USDC. If the price of EGLD was to fall, they could buy back the 10 EGLD for less USDC, thus closing their Borrow position and gaining the difference.
I) First of all, Connect Your Wallet(1) and then select the USDC Money Market(2).
II) "Supply" USDC.
III) "Activate it as Collateral".
IV) "Take a loan" in the form of EGLD.
V) Go to "xExchange" and sell your EGLD for USDC.
VI) Wait for the EGLD price to drop and then buy back EGLD with USDC.
VII) Go to the Hatom Lending Protocol, "Repay your Loan", and pocket the difference.
as of 18/06/2023
If you can create a "Long" or "Short" position that uses leverage, you can Cycle this leverage to increase further the exposure of that position. If a user makes a "Short Position" against EGLD, he would supply USDC, Borrow EGLD against it, and then sell the EGLD. To start a Leverage Cycle, they would supply the USDC generated from the EGLD sale as additional Collateral to get a loan of even more EGLD and repeat the process many times. Each Collateral Supply will permit a smaller Borrow position, but there is a limit on the number of Cycles performed.
as of 17/06/2023
Liquid Staking is a module that allows users to stake their EGLD without locking up its value.
Users can delegate their EGLD to Hatom's whitelisted validators to secure the Network and receive a token called Staked EGLD (sEGLD); it's a reward-bearing version of EGLD that can be used within decentralized finance Apps such as Automated Market Makers (AMMs), Lending Protocols, and NFT Marketplaces.
Liquid Staking allows users to earn interest from staking EGLD with validators while having sEGLD that they can supply in the Hatom Lending Protocol.
Users will no longer have to choose between delegating their EGLD to the validators or supplying them to the Hatom Lending Protocol; they can do both and combine the rewards. Our protocol distinguishes itself by distributing EGLD across a network of whitelisted validators called Hatom Node Operators in a fair, decentralized manner. The allocation takes into account the liquidity and Annual Percentage Rate (APR) of each validator, thereby ensuring equitable distribution and optimizing returns for our users.
Hatom Novel Liquid Staking will allow its users to generate even more yield by introducing a boosted version of sEGLD called, HsEGLD.
HsEGLD or HatomStaked EGLD is an interest-bearing version of sEGLD and constitutes the Receipt Token you get when supplying the sEGLD on the lending protocol; HsEGLD combines both the Staking Rewards that are received from validators and the Borrowing Interest that are earned when supplying assets on the Lending Protocol. You can also activate HsEGLD as collateral and earn additional rewards if applied. xEGLD is a leveraged version of sEGLD, an Interest Compounding EGLD Index. This innovative solution enhances staking returns through a leveraged liquid staking strategy. Utilizing set's robust leverage token infrastructure, xEGLD multiplies the staking rate for sEGLD while minimizing transaction costs and risk associated with maintaining collateralized debt on the Hatom Lending App. Token holders can retain spot exposure to EGLD while amplifying their staking returns up to 3.3 times.
sEGLD, HsEGLD, and xEGLD will have their liquidity pools in a Stableswap Dex, providing stakers quick access to their staked funds and bypassing the 10 days cooldown period.
Our Liquid Staking solution has been crafted through a collaborative effort between our dedicated team at Hatom and the experts from MultiversX. Furthermore, the design and verification of the system have been meticulously executed in partnership with Runtime Verification.
as of 17/06/2023
Hatom Labs, as a growth catalyst for the Hatom Ecosystem, plays a vital role in supporting and funding development teams in creating and sustaining meaningful decentralized finance (DeFi) initiatives around the Hatom Ecosystem. These initiatives include the expansion of the Hatom Ecosystem and the MultiversX Blockchain through financial and technical contributions in the form of incubations, grants, and endorsements.
One of the key ways that Hatom Labs supports development teams is through its incubation program. The program provides teams with the resources and support needed to develop and launch their projects within the MultiversX Ecosystem. This includes funding, mentorship, and access to a network of experienced industry professionals.
In addition, Hatom Labs also offers grants to teams working on projects that align with the overall vision and mission of the Hatom Ecosystem. These grants provide teams with additional funding to help them bring their projects to fruition.
Lastly, Hatom Labs also provides endorsements for projects that have demonstrated strong potential for contributing to the growth and development of the MultiversX Network. These endorsements help increase the visibility and credibility of projects within the ecosystem, which can, in turn, attract more builders and users to the ecosystem.
In summary, Hatom Labs is dedicated to creating a positive and thriving ecosystem around the Hatom Ecosystem and the MultiversX Blockchain. By providing financial and technical support to development teams, Hatom Labs is helping to drive the growth and development of the ecosystem and attract more builders to the platform.
You can access Hatom Labs at: https://hatomlabs.com/
as of 17/06/2023
Learn how to be eligible for a grant for contributing to the Hatom Ecosystem.
To encourage developers to build on top of Hatom and help expand it into the wider DeFi ecosystem, a portion of the Hatom Treasury will be allocated to a Grants program. The grant aims to boost the growth of Hatom by establishing a culture of community-driven development. Each individual will contribute to making Hatom become a "Defi Hub."
Note that: A detailed plan will be released after the Token Generation Event.
Meanwhile, If you have already started working on a project that relies on one of Hatom's products, please get in touch with us here: https://hatomlabs.com/contact.
as of 17/06/2023
Esdt is an initiative aimed to raise awareness and educate the community around DeFi as a whole, and the different tokens launched by Hatom Labs more particularly.
It provides a detailed description of:
*HTokens, the receipts tokens you receive when you supply an asset in the Hatom Lending Protocol.
*Staked EGLD, the tokens you receive when you stake your EGLD through the Liquid staking module.
*Hatom USD, the collateral backed stablecoin native to the MultiversX Blockchain.
*Synthetic tokens, the pegged tokens whose price is designed to remain the same as a designated asset.
You can find there, a deeper explanation of each of those tokens, examples of their use cases, their respective utility, and the different interactions each token can perform.
Note that: The website will be constantly updated with new content.
You can access Esdt at: https://esdt.io/
The Booster is a unique feature in our lending protocol that provides additional benefits to users. By staking HTM tokens in the Booster module, users can unlock extra rewards, which enhance their overall yield. To fully benefit from the Boosted APYs, users must stake an amount of HTM tokens equivalent to 10% of their total assets supplied to the lending protocol, which they've also activated as collateral. The boost isn't limited to a specific money market and applies to all assets users have activated as collateral. The APY (Annual Percentage Yield) is calculated on top of the base APY that users receive from the lending protocol. For instance, if a user receives a base APY of 4% from lending a particular asset and an additional Booster APY of 6%, their total APY would be 10%. This combined APY offers users an enticing opportunity to maximize their returns. The APY on the boosted position isn't fixed; the rate is determined by a combination of factors, including the total amount of HTM tokens staked in the Booster and the overall liquidity of the lending protocol.
To fully leverage the highest Booster APY, ensure that the value of your Staked HTM meets or exceeds 10% of your total collateral position. If your Staked HTM's value falls short of 10% of your total collateral, the Booster APY earned will be determined by the ratio of your Staked HTM balance to your collateral value.
Users can stake HTM in the Booster module without being capped at 10%. This means they have the freedom to stake as much as they want in order to maintain booster benefits, particularly during times of market volatility. This flexibility empowers users to protect their boosted positions and continue to reap the benefits of enhanced yields. It reflects the Booster's design in accommodating market fluctuations while optimizing rewards. Users can withdraw their staked HTM tokens at their discretion. However, each unstaking action initiates a 7-day cooldown period. During these 7 days, users won't receive the boosted rewards but will only earn the supply APY plus any additional rewards available for specific money markets. Here's an example to help illustrate how this works:
Suppose Bob has a total of $50K in the lending protocol. The supply APY is 5%, and the Boosted APY is 10%. For Bob to achieve the combined 15% APY, he needs to stake $5K worth of HTM tokens, 10% of his total position in the lending protocol. If Bob opts to stake only $2.5K of HTM tokens, he will qualify for just half of the Boosted APY, equating to 5%. Consequently, his cumulative APY will be 10%, consisting of the 5% supply APY and the 5% Boosted APY.
The Booster plays an important role in distributing rewards on the lending protocol and will also play an important role in the upcoming products of the protocol. Its significance goes beyond immediate benefits and lays the groundwork for future developments and innovations. The Booster's integration into subsequent products highlights its strategic importance, indicating that users can expect even more advantageous opportunities and enhanced yields as the protocol evolves and expands.
The Accumulator is a new feature added to the Rewards section of the platform. This feature provides users with an option to claim their rewards in two different forms: either as USDC or as HTM tokens.
If users opt for the HTM option, they can enjoy an additional 5% added to their total rewards. For instance, if a user has $1,000 worth of rewards in USDC and decides to claim them in HTM tokens, they will receive a whopping $1,050 worth of HTM tokens. This is because the original reward amount is increased by 5% when converted to HTM tokens.
When users claim HTM instead of USDC, the exchange process will be facilitated through the AshSwap aggregator. This allows users to specify their preferred slippage rate, ensuring that the exchange only proceeds if it meets their set conditions. This approach ensures a favorable exchange environment, making claiming rewards in HTM more appealing. It also empowers users by giving them control over the swapping conditions, which aligns with the Accumulator's goal of enhancing user rewards while boosting demand for HTM tokens within the platform. The Accumulator has two primary objectives. Firstly, it enables users to maximize their rewards by opting for the HTM option. Secondly, it fuels the use and demand for the HTM token in the platform's ecosystem. When users receive rewards in HTM tokens, it does not result in inflation or dilution for token holders. The USDC rewards are exchanged on the open market for HTM tokens, which are then sent to the user with an extra bonus. This feature not only provides users with superior rewards but also bolsters the demand for HTM tokens in the market. This feature empowers users to decide how they want to claim their rewards while also contributing to the stability and growth of the HTM token within the platform.
USH is the first native, over-collateralized, and decentralized stablecoin on the MultiversX blockchain, designed to maintain a stable value pegged 1:1 to the U.S. Dollar. It is minted by supplying blue-chip assets like WETH, EGLD, WBTC, USDC, or any other asset supplied into Hatom’s Lending Protocol as collateral and other innovative and well-designed mechanisms.
This multi-backed approach, alongside market efficiencies, ensures USH's stability and reliability. Users mint USH by providing collateral at predetermined ratios, supporting its value with a diverse basket of solid assets. The mechanism of liquidating or repaying borrowed positions, which leads to the 'burning' or removal of USH from circulation, further maintains the stablecoin's parity with the U.S. Dollar, ensuring its consistent performance and trustworthiness in the market.
Given the recent fluctuations in the market, there is an increasing demand for stablecoins that are decentralized and over-collateralized to maintain the values of the crypto sphere. As a stablecoin that our platform's Governance controls, USH is well-positioned to meet this demand. With community support, USH has the potential to evolve into an integral component of the DeFi ecosystem, providing stability amidst market fluctuations and removing the current high borrow APY present on the markets.
In addition to USH, Hatom also introduces an interest-bearing version of USH, called sUSH, which represents the underlying USH utility plus a real yield which is accumulated constantly through multiple avenues used to mint USH. Users can mint sUSH through the Staking Module.
It is worth noting that interest payments made by USH minters through the Lending Protocol are not directed into a typical Reserve Factor, as is the case with borrowing other assets. Instead, these payments are funneled directly into the Staking Module to increase the price of sUSH, the interest-bearing stablecoin.
Permissionless Acquire USH: Trade USH or sUSH on multiple exchanges without the need to provide collateral.
Direct Mint USH: Mint USH directly through multiple facilitators such as Lending Protocol, Isolated Pools, or Boosted Vaults.
Direct Redeem USH: Exchange USH directly in Hatom Protocol for a value fixed at $1.
Stake USH to mint sUSH: Stake USH in the Staking Module and receive the interest-bearing version of USH, earning interest passively.
Please note: While USH will initially launch as the first native stablecoin on MultiversX, it is slated to evolve into an omnichain stablecoin, as outlined in the updated Hatom Roadmap and the protocol’s development towards an omnichain model.
Facilitators are essential components in the Hatom USD ecosystem, tasked with the minting and burning of USH tokens. These entities employ various strategies to maintain the stability and security of the USH ecosystem. Each Facilitator is assigned a 'Bucket' with a designated 'Capacity,' indicating the maximum quantity of USH tokens they can mint.
The Governance system of Hatom, which administers the operations of USH, determines and adjusts this limit for each Facilitator.
As the first facilitator of USH, the Hatom Lending Protocol plays a vital role in fostering stability within the Hatom USD ecosystem. Hatom employs an over-collateralized model, akin to its Lending Protocol, requiring users to deposit a higher value in collateral than the USH they intend to borrow. This practice minimizes the risk of default, ensuring a safe and secure lending experience.
A unique feature of Hatom is its ability to allow users to accrue yields on their deposited collateral while still retaining the capability to borrow against it. This feature enhances its appeal to users seeking additional passive income streams.
Furthermore, Hatom aids in initiating the supply of the USH stablecoin in a decentralized and permissionless way, thus allowing anyone to participate in the lending ecosystem and contribute to its stability.
Minting rates for USH are predetermined and vary according to the collateral type. The system is designed to prioritize the use of assets with lower APY for minting. For instance, if a user supplies $1000 worth of BTC and $1000 worth of USDC, a total of $1400 worth of USH can be minted. Considering that BTC has a -3.5% APY and USDC has a -2.5% APY, the protocol will initially utilize USDC due to its lower APY for the first $700 minted. Any minting beyond this amount is subject to the higher BTC APY. The overall APY is dynamically adjusted based on the proportion to each asset used after the initial $700.
Through this facilitator, users can use certain assets they have activated as collateral, with the unique aspect that interest on borrowed funds is paid to the protocol, which mints USH in return. This system ensures that the APY is not influenced by supply and demand dynamics but remains fixed per asset.
Please note: Users are able to mint USH using the Lending Protocol by leveraging various assets as collateral. However, this does not include EGLD and sEGLD. For minting USH with EGLD and sEGLD, users are required to utilize the Isolated Pool facilitator.
This facilitator offers users the opportunity to mint USH using either EGLD or sEGLD under specific conditions without a minting fee, streamlining the process and enhancing benefits.
Minting USH Using EGLD: Users can mint USH without receiving any supply APY on the provided EGLD with a 0% minting fee. During this process, the protocol automatically converts the supplied EGLD into sEGLD through Liquid Staking, which is then utilized within the Lending Protocol to generate the supply base APY.
Minting USH Using sEGLD: Similarly, sEGLD can be supplied to mint USH at a 0% Minting Fee, without earning any supply APY. Upon supplying, the protocol automatically converts the sEGLD's value to the equivalent amount in EGLD at the moment of supply, allowing users to mint USH. Once sEGLD is supplied, users cease to earn any Liquid Staking APY, with the conversion from sEGLD to EGLD being fixed at that specific point in time.
Upon withdrawal of the collateral, users are given the flexibility to instantly claim sEGLD or opt to wait 10 days to receive EGLD, providing additional liquidity options and user control over their assets
Please note: A portion of the revenue generated by EGLD and sEGLD, which users deposit to mint USH through the Isolated Pool, is reinvested into the sUSH to ensure its continuous yield generation.
The Boosted Vaults provides users with a way to deposit various assets, such as EGLD, HTM, USDC, and USDT, and take part in liquidity provision and yield farming.
When a user deposits an asset, say EGLD valued at $1000, the protocol mirrors this action by minting an equal amount of USH. This USH is then paired with the deposited EGLD to form a Liquidity Pair (LP), which is subsequently used in farming liquidity pools on supported exchanges like AshSwap, DX25, or xExchange. This mechanism effectively doubles the user's farming capability, turning a $1000 deposit into a $2000 position, thus enhancing the potential rewards.
In this process, the LP is not held in the user's wallet but managed at the protocol level. It's important to note that users assume the risk of any impermanent loss. For instance, if the EGLD value decreases, the protocol's rebalancing action involves selling USH to maintain the 50/50 balance in the LP. But on the contrary, if the price of EGLD increases, then a part of it is sold for USH, resulting in a surplus of USH for the user. This excess USH, after the protocol adjusts the LP's composition to maintain the balance, effectively becomes a benefit for the user as now the user will have more USH than the amount that was initially minted.
Upon deciding to exit the liquidity pool, users must address the full amount of USH originally minted for the LP. This typically involves using a portion of their EGLD to purchase USH, thereby completely settling the debt. For a more detailed explanation of how impermanent loss works, please check this article.
To maintain control over the USH circulation generated via the Boosted Vault and to manage its impact on the APY in the Staking Module, the system implements caps on the maximum amount of USH that can be minted. These caps are proportional to the collateral supplied in the Isolated Pool for minting USH. For example, a cap could be initially set at 10%, but it adjusts downward in response to increases in the value of assets in the Isolated Pools. The cap adjustment follows a tiered approach based on the total liquidity provided in assets like EGLD and sEGLD.
Please note: Users can boost their APY through the governance tokens needed on each exchange that they decide to farm yield; if AshSwap is used, for example, the user can boost their position with veASH tokens by depositing them directly into the Hatom Protocol.
USH's liquidity and market presence rely on Facilitators, selected and regulated by Hatom Governance, which assigns capacities and mandates adherence to a specific framework. This process, open for community input, aims to refine selection and strategy execution.
It's exciting to contemplate the innovative ways Facilitators could mint USH. This could result in the emergence of creative new strategies that enhance the value and utility of USH for its users.
For instance, Hatom's Lending Protocol, one of the initial Facilitators, employs an over-collateralized model. This ensures that USH is backed by more collateral than its actual value, providing an extra layer of security for its users. All strategies must prioritize the security and viability of the model to maintain a safe environment.
The Boosted Vaults feature an under-collateralized model, enabling users to access greater liquidity for yield farming. This allows users to generate liquidity pairs without having to sell any assets, thus enhancing profitability and capital efficiency.
Within the Hatom Protocol, USH is always priced at a fixed rate of 1 U.S. Dollar ($1), irrespective of its market value on different DEXs. Various pegging mechanisms are in place to consistently maintain this $1 valuation for USH.
When the market price of USH exceeds $1, it creates a profit opportunity for users. They are incentivized to mint new USH and sell it on the market, and then later repay when the price falls enough to ensure a profit.
To break this down:
If the USH price is trading higher than $1 (the peg) in the market, users can mint 1 USH for $1 worth of debt and sell it for more than $1.
The minter can then repay their debt for $1 while pocketing the difference. This action increases the supply of USH and puts downward pressure on its price.
Let's illustrate with an example:
The protocol maintains an internal price for USH, which is pegged at $1.
However, the market price of USH is slightly higher, say $1.05.
A user capitalizes on this difference by minting 1 USH via the Hatom Protocol for $1.
Subsequently, the user sells the newly minted USH on the market for a higher price of $1.05.
This sale increases the overall supply of USH in the market.
As more USH becomes available, the market price should, theoretically, decrease to $1 due to the dynamics of supply and demand.
The user then buys back USH from the market at the lower price of $1.
With the purchased USH, the user repays their $1 debt to the Hatom Protocol.
After completing the process, the user is left with a profit of $0.05 per USH, which represents the difference between the sale and repurchase prices.
This strategy ensures market stability by encouraging actions that bring the price of USH back to its $1 peg.
When the market price of USH falls below $1, it creates an incentive for borrowers to buy USH at this discounted price and use it to repay or liquidate their debt, profiting from the price difference.
To elaborate:
If the market price of USH drops below the peg ($1), borrowers can purchase 1 USH for less than $1, and use it to pay off a debt worth $1. This action decreases the supply of USH, which in turn pushes up its price.
Let's illustrate this with an example:
The protocol's internal price for USH is pegged at $1.
However, the market price of USH has fallen below this, let's say to $0.95.
A borrower can take advantage of this by purchasing USH from the market for $0.95.
The borrower then uses the purchased USH to repay their debt, which is valued at $1 per USH, effectively paying off their debt for less.
This action increases the demand for USH, which reduces its supply in the market and thereby drives up its price.
This mechanism ensures market stability by encouraging actions that guide the market price of USH back to its $1 peg.
When initiating the repayment or liquidation, USH is transferred back to the pool by either the borrower or the liquidator and it is burned. A percentage of the minting fees paid by the borrowers ( minters ) is being distributed to the Staking Module to ensure continuous yield for sUSH holders.
In scenarios where the collateral ratio of borrowers (minters) drops below the established minimum threshold, a process of liquidation is started to maintain the integrity and full backing of USH by collateral assets.
This liquidation process involves diminishing the debt of the borrower (minter), with liquidators being compensated through the acquisition of the collateral asset, in return for settling the outstanding debt. Following the completion of the liquidation, the borrower’s (minter’s) adjusted debt is cleared, but it’s important to mention that only 50% of the debt can be liquidated by a borrower at one time.
Being aware of market-induced price volatility is crucial, as shifts in the value of collateral can affect the health factor, potentially triggering liquidations. Should the health factor fall beneath, the collateral could be subject to liquidation. To circumvent such outcomes, one could either augment the collateral provided or settle parts of the borrow positions.
The USH Staking Module allows users who are seeking to earn passive income on their USH holding to stake it and receive the interest-bearing token version of it, sUSH. It works in a similar fashion with sEGLD, where the rewards from different sources are reinvested back in the Staking Module to increase the price of sUSH relative to USH.
The increase in price doesn’t rely on a liquidity mining program, but it derives from well-thought-out and sustainable revenue sources such as:
Minting Fees From the Lending Protocol: Fees generated through the Lending Protocol are injected back into the USH Staking Module.
Isolated Pools Revenue: A significant portion of revenue comes from the EGLD collateral in the Isolated Pool. This EGLD is deposited in the Liquid Staking Module and then supplied to the Lending Protocol, where it earns a base APY on top of staking rewards.
Boosted Vaults Streaming Fee: Revenue is also sourced from the streaming fee applied in the Boosted Vaults, adding another layer of income to support the sUSH yield.
Through this diverse and robust revenue generation model, the USH Staking Module not only offers an attractive yield on sUSH but also ensures that the yield is sustained and supported by actual economic activities within the protocol.
Consider this scenario for a clearer understanding:
Suppose EGLD is priced at $70, and in an isolated pool, $50 million of it is used as collateral. Now, let's say 40% of this collateral is utilized to mint sUSH, which equates to $20 million. If sUSH has a staking APY of 14% and the price of EGLD suddenly rises to $700, the value of the rewards from the staked collateral would also increase by a factor of ten.
As a result of this price jump, it would be possible to offer an APY of 140% on sUSH. This high APY incentivizes users to mint additional sUSH and to contribute more collateral to the system. This process ensures that the minting of USH keeps pace proportionally with any increases in the value of EGLD, maintaining a balance in the APY with each price change.
Upon the strategic expansion to additional blockchain ecosystems, the Hatom Protocol v2 will incorporate a diverse array of Liquid Staking Tokens (LSTs) including, but not limited to, stETH, cbETH, and rETH, alongside liquid derivatives of SOL, AVAX, and other native tokens from the respective ecosystems.
Hatom is a decentralized protocol managed by the Hatom Foundation and HTM token holders. Any changes or upgrades to the Hatom Protocol must be proposed and voted on by the community through Hatom Governance. Every HTM token holder can have a say in the protocol's future, making it truly decentralized.
Hatom Governance has a crucial role in determining USH and sUSH Facilitators and their parameters. It is also responsible for proposing changes to the current implementation. Frameworks and processes for Facilitators and their parameters are open to community discussion.
Hatom Governance is responsible for supervising the implementation of the different strategies of the Facilitators for both USH and sUSH. This is achieved by approving and removing Facilitators in a meticulous manner.
Before being granted permission to mint USH tokens, each Facilitator is subjected to an audit and review process by the Hatom Governance. Additionally, each facilitator is required to adhere to specific governance rules that define the maximum amount of USH tokens they can mint. Hatom Governance has the ability to attract a diverse range of facilitators, including those who are not affiliated with the Hatom Protocol.
Hatom Governance has the power to define the interest rates and discount rates to encourage the minting or burning of USH tokens. The interest rates can be periodically modified based on the supply and demand models of USH, enabling the protocol's health to be managed with greater flexibility. Both the interest rate and discount rate can be configured by Hatom Governance, providing HTM token holders with complete authority over USH monetary policy.
Please note: Currently, USH is not fully governed by the DAO, and the Foundation still oversees the protocol's decision-making processes. The transition to a fully decentralized risk DAO will occur once the Foundation deems the protocol ready and there is an evident understanding of the Governance process within the community. At that point, the entire protocol's governance will be handed over to the community.
Hatom built the first bridge that connects the Bittensor ecosystem with the MultiversX ecosystem. This innovative initiative allows users to seamlessly bridge their assets to the MultiversX blockchain. Once TAO is bridged, users can take advantage of the newly introduced wTAO token, providing them with opportunities to actively participate in the ecosystem while maintaining exposure to their underlying TAO.
Within the MultiversX blockchain, the wTAO token serves a dual purpose. It can be utilized within the Lending Protocol and Liquid Staking, opening diverse DeFi opportunities for users, but it will also be available to provide liquidity in different pools opened by Hatom's partners.
Both wTAO and swTAO (Liquid Staking Derivative of wTAO) will be integrated into the Hatom Lending Protocol, where they can be supplied to earn interest, and activated as collateral for extra incentives or borrowed. It offers more flexibility and allows users to open liquidity if needed without selling the asset and losing exposure.
Through the TAO Liquid Staking, users will benefit from earning staking rewards without fully locking their liquidity; this allows broader participation in DeFi and unlocks new opportunities within the MultiversX ecosystem.
TAO will be integrated into the biggest decentralized exchanges across the MultiversX ecosystem, offering deep liquidity for users to perform transactions in an efficient manner. It allows users to provide liquidity for any pair associated with TAO to generate swap fees, but also diverse yield farming opportunities.
Please note: It is not necessary to have EGLD for gas fees on the MultiversX blockchain; upon the first successful bridge transaction from Bittensor, users will receive enough EGLD to cover the initial transaction on MultiversX.
The bridging mechanism operates with a straightforward yet robust structure. Bittensor users gain access to the TAO Bridge by connecting their MultiversX and Bittensor accounts. Once connected, the user selects whether they intend to transfer assets from Bittensor to MultiversX or vice versa.
If the user chooses to bridge to MultiversX, they receive a provisional wallet address to deposit their TAO tokens. Subsequently, they sign the transaction through the Bridge frontend and await the minting of their wTAO tokens.
For users looking to swap their wTAO tokens back to TAO, the process is streamlined. Users only need to initiate the burn of their wTAO tokens through the frontend, signaling a bridge-back request. After a brief period, Hatom will transfer the corresponding TAO tokens to the provided Bittensor address.
To initiate the Bridge In process, the user must establish connections with both the Bittensor and MultiversX wallets. Hatom supports four wallet options for the Bittensor ecosystem: Polkadot.js Wallet, Nova Wallet, Sub Wallet, or the Bittensor Wallet extension.
The Nova Wallet integration will be available exclusively on the mobile version of the application. The Bittensor Wallet extension, however, will not be supported until after the first quarter of 2024, as it currently lacks the capability to integrate with decentralized applications (dApps).
To connect to the MultiversX ecosystem, users have four available methods: the MultiversX DeFi Wallet, the MultiversX Web Wallet, Ledger hardware wallets, and the xPortal App.
You can either bridge to MultiversX, also referred to as Bridge In, which involves transferring assets from the Bittensor ecosystem to the MultiversX blockchain, enabling you to exchange your TAO tokens for the wrapped version, wTAO. Alternatively, you can Bridge Back from MultiversX to Bittensor, allowing you to retrieve your TAO tokens after burning the corresponding wTAO tokens on the MultiversX blockchain.
When a user initiates a transfer from the Bittensor ecosystem to the MultiversX blockchain, they will be prompted to enter the desired amount. The interface will then display the applicable fees for the bridging service. If the user accepts the presented values, they can proceed by clicking "Bridge." This action will create a bridge intent record in the system's database, and the user will be assigned a provisional wallet address to transfer the specified amount of TAO tokens for bridging.
Subsequently, the user will be required to sign the transfer transaction using their selected wallet provider, authorizing the movement of TAO tokens from their wallet to the assigned provisional wallet address.
After a period of time, the system will systematically scan all bridge intents created for users who have initiated the bridging process. It will verify the provisional wallets for the presence of funds and identify valid bridge intents. For each valid intent, the system will proceed to mint the corresponding amount of wTAO (Wrapped TAO) tokens and delegate them to the user's MultiversX account.
When users wish to retrieve their TAO tokens from the wTAO tokens on the MultiversX blockchain, they must select the "Bridge to Finney" option to access the bridge-back interface. On this page, users will specify the amount they intend to bridge back. Similar to the initial bridging process, the interface will display the corresponding amount of TAO tokens the user will receive.
If the user proceeds, they will be prompted to click "Bridge" and sign a transaction to burn the specified amount of wTAO tokens. This action will trigger the creation of a bridge-back intent record in the system's database.
After a period of time, the system will scan for these burn transactions that have been confirmed on the blockchain, typically after 20 blocks have been included. Bridge-back intents associated with confirmed burn transactions will be qualified as valid, and the system will then proceed to transfer the corresponding TAO tokens from the Treasury wallet to the user's Bittensor wallet address.
The bridging process between the Bittensor and MultiversX ecosystems incurs certain fees. These fees are composed of two components: gas fees associated with executing transactions on the respective blockchains, and operational fees to sustain the bridging service.
The bridging process from Bittensor to MultiversX involves several fee components:
User Deposit Fee: Users must pay the transaction fee to deposit TAO tokens from their Bittensor address to the designated provisional wallet address.
Provisional Wallet Transfer Fee: A transaction fee, along with an optional tip, is charged to transfer the TAO tokens from the provisional wallet to the Treasury wallet. This fee covers the costs of executing the transfer on the Bittensor network.
Staking Fee: A transaction fee is incurred to stake the amount received by the Treasury wallet and generate rewards for distribution through the liquid staking mechanism.
Operational Fee: An operational fee of 0.5% of the bridged amount is charged to cover the costs associated with maintaining and operating the bridging service.
The bridge-back process, which involves retrieving TAO tokens from the MultiversX blockchain, includes the following fee components:
Burn Transaction Fee: Users must pay the gas fee denominated in EGLD for executing the burn transaction of their wTAO tokens on the MultiversX blockchain.
Undelegation Fee: A transaction fee of 150 nTAO is charged for undelegating the corresponding TAO tokens from the staking pool to the Treasury wallet.
Treasury Transfer Fee: An additional transaction fee of 150 nTAO is incurred for transferring the TAO tokens from the Treasury wallet to the user's Bittensor wallet address.
Operational Fee: An operational fee of 0.5% of the bridged amount is charged to cover the costs associated with maintaining and operating the bridge-back service.
as of 17/06/2023
The HTM Token, forged on the MultiversX Standard Digital Token protocol, is the lifeblood of the Hatom Ecosystem. It serves as an integral cog in the Governance Machinery of Hatom's expansive network, facilitating a perpetual decision-making process that fuels the Hatom Protocol and every product outlined in our roadmap. This Roadmap encompasses an array of initiatives such as the Lending Protocol, Liquid Staking, Hatom USD, Safety Module, among others.
But the role of the Token surpasses mere transactional functions; it equips our community to steer key developments within the Ecosystem. Community members can have a direct say in decisions related to innovative features, listing policies, and other system upgrades. By contributing to these decisions, our community helps shape a DeFi Ecosystem that stays at the forefront of the curve. This democratic exercise empowers the Hatom Token holders to mould a future that resonates with their vision for decentralized finance.
The HTM Token extends an invitation for active participation within the Hatom Ecosystem. As the linchpin in our Governance Structure, the HTM Token paves the way for a genuinely community-driven ecosystem. It gives community members the agency to decide on vital aspects of the ecosystem, including potential upgrades, integrations of new features, or listing of forthcoming tokens.
In addition, a specific part of the revenue generated by the Hatom Ecosystem will be channelled into Booster. This feature will allow community members to stake their Hatom Tokens and earn a share of revenues that the ecosystem generates from various sources like the Lending Protocol, Liquid Staking, USH the Stablecoin, Leverage Staking, and much more.
Encompassing the highest revenue-generating protocols in DeFi, which form the backbone of any blockchain DeFi architecture, the HTM Token is set to emerge as one of the most influential tokens in Governance. Its future capability to distribute dividends to its holders adds a unique dimension to its appeal. Anyone accumulating HTM will have the opportunity to earn a share of the profits generated by the most lucrative protocol on the MultiversX Blockchain.
Further, HTM Token holders can fortify an additional security layer within the protocol by depositing their HTM Tokens in the Safety Module. In return, they will be rewarded with incentives in the form of HTM Tokens, initially sourced from the open market using a fraction of the protocol's revenue.
HTM will also be integrated within our Lending Application in the near future. This will allow users to both supply and borrow HTM, creating a dynamic lending market around the token.
as of 17/06/2023
Hatom Governance has the ability to adjust key parameters across all modules within the Hatom Ecosystem. This includes not only the Lending Protocol, but also extends to the Liquid Staking, USH Stablecoin, and any other protocols that have been or will be developed within our platform. Examples of such tunable parameters could be an increase/decrease in the Collateral Factor, augmentation of the Health Factor, adjustment of the Liquidation Incentive, Service Fee in Liquid Staking, etc.
All proposed changes undergo rigorous analysis by the Hatom Team and are then passed onto our trusted partners, who are responsible for risk assessment and Security Audits. This ensures the safety and viability of any proposed alterations to the protocol's parameters.
Substantial changes are then subjected to the In-App Voting Mechanism for community consensus. Only upon receiving community validation are these modifications implemented, thus making Hatom Protocol fully community-driven. This process embodies our commitment to decentralization and the power of community decision-making in shaping the future of the Hatom Ecosystem.
as of 17/06/2023
The voting process is designed to be user-friendly and straightforward. To participate, navigate to the 'Governance' section and select a pending proposal you wish to vote on. Once you've chosen a proposal, you'll be able to examine its details and stake your HTM Tokens. This step is crucial as your Voting Power is determined by the HTM Tokens staked during the Snapshot taken at the activation of the proposal.
To engage in the voting process, it's important to stake your HTM Tokens in 'Governance' before the proposal goes live. Remember, the quantity of HTM Tokens you stake during the Snapshot determines your Voting Power for that particular proposal. It's worth noting that your Voting Power may vary from one proposal to another, contingent on the amount of HTM Tokens you staked in 'Governance' at the time of each proposal's Snapshot.
Yes, you have the freedom to withdraw your HTM Tokens at any time, without any cooldown period. The voting process takes into account the Voting Power you had at the time of the Snapshot for each individual proposal.
The staking period may span a few days, with the Snapshot happening at the very last moment before a proposal becomes active. Provided your tokens are staked at the time the Snapshot is taken, your Voting Power will be considered, even if you staked just a moment before the Snapshot. However, if you withdraw or unstake your tokens before the snapshot is taken, your Voting Power won't be recorded, and you will be ineligible to vote on that proposal.
The 'Governance' module leverages a Snapshot model to determine Voting Power. This means that staking additional HTM Tokens into 'Governance' after a proposal is already active won't increase your Voting Power for that specific proposal. If you aim to increase your Voting Power for each proposal, ensure you stake your HTM Tokens before the snapshot is taken.
Absolutely! The 'Governance' module can accommodate an unlimited number of simultaneous proposals. Please note that the Voting Power allocated to each proposal may vary, as it depends on the quantity of HTM Tokens staked in 'Governance' at the time of their respective Snapshots.
as of 17/06/2023
Hatom's on-chain Governance deploys a mechanism that empowers holders of the "HTM Token" to cast votes for protocol changes directly on the blockchain. This system was designed to afford individual users greater influence in the Governance process. Under this structure, Governance proposals are disseminated among the community through polls and, upon securing the requisite votes for ratification, are subsequently executed. On-chain Governance mechanisms are widely employed across DeFi platforms. To earn voting rights or the ability to make a proposal, you typically must hold a specified quantity of "HTM tokens".
The Hatom Protocol Team consistently gathers feedback, which is used to create tailored polls that align with the community's needs and preferences, allowing for continual App upgrades.
Once the polls are assembled and displayed in the voting section within the "App", the community is granted a period of 2-3 days to cast their votes and determine whether the proposed features should be implemented.
If the votes yield a favorable outcome, the proposed feature will be integrated into the Hatom Protocol in the ensuing days, reflecting the community's active participation in shaping the platform's development.
The maximum supply of HTM tokens that will ever enter circulation is capped at 100 million and will become accessible over the course of 5 years. To incentivize long-term investments into Hatom, an unlock mechanism and vesting period have been implemented for all partners involved in Hatom’s ecosystem.
Here is the detailed token vesting schedule:
Treasury: This reserve manages operational costs, strategic investments, and incentives aimed at rewarding and motivating contributors, users, and stakeholders. It acts as a financial backbone, ensuring long-term sustainability and enabling the project to respond to opportunities and challenges.
Liquidity: These funds ensure there's enough capital in pools on exchanges to facilitate efficient trading of the project's tokens. They support the project's presence on both decentralized and centralized exchanges (CEXs), including covering costs associated with listing fees for CEXs.
Ecosystem: Allocated to nurture the project's community and network, these funds support developer grants, community initiatives, partnerships, and user incentives. They're aimed at stimulating innovation, growth, and a robust support base for the project’s longevity.
HTM removed traditional Liquidity Mining Programs, with all user incentives originating exclusively from the revenue fees accrued by our suite of core products. Our aim is to cultivate a self-sustaining economic model that allows for ecosystem expansion without adversely impacting the token's value or stability.
as of 09/12/2023
Status:
1. Ideation ✅
2. UI/UX Front-end: ✅
3. SC's Development: ✅
4. Devnet Testing: ✅ 5. Mainnet Release: ✅
Status:
1. Ideation: ✅ 2. UI/UX Front-end: ✅ 3. SC's Development: ✅ 4. Devnet Testing: ✅ 5. Mainnet Release: ✅
Status:
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Complementing the TAO Bridge, Hatom also developed the innovative Liquid Staking Module for TAO, allowing its users to earn staking rewards while simultaneously retaining liquidity to be used in the broader DeFi ecosystem. Upon depositing in the Liquid Staking Module, users are able to increase their yield through other opportunities in the ecosystem. This method aligns seamlessly with the dynamic needs of the DeFi community, providing a sophisticated solution that optimizes both the utility and the liquidity trade-off, thus enabling users to maximize their investment outcomes.
Status:
1. Ideation: ✅ 2. UI/UX Front-end: ✅ 3. SC's Development: ✅ 4. Devnet Testing: ✅ 5. Mainnet Release: ✅
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1. Ideation: ✅ 2. UI/UX Front-end: ✅ 3. SC's Development: ✅ 4. Devnet Testing: ✅ 5. Mainnet Release: ⏳
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EGLD and sEGLD are correlated, which reduces the risk of liquidation as they behave similarly. If the price of EGLD decreases, the price of sEGLD also decreases, and if EGLD increases, sEGLD increases as well, ensuring the safety of the leverage position in the lending protocol. Additionally, Hatom uses the liquid staking smart contract as a price oracle for sEGLD in the lending protocol. This eliminates the risk of liquidation caused by sEGLD losing its peg on DEXes, thereby enhancing the security of xEGLD.
Status:
1. Ideation: ✅ 2. UI/UX Front-end: ✅ 3. SC's Development: ⏳ 4. Devnet Testing: ⏳ 5. Mainnet Release: ⏳
USH will also be available for minting with wTAO, establishing it as the first stablecoin to be backed by TAO. This unique integration extends the utility of USH, offering an innovative option for TAO holders to engage with their assets and participate in the broad DeFi ecosystem.
Status:
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Hatom is set to unveil the highly-anticipated Hatom Platform V2, amplifying its stature as a future powerhouse in the DeFi ecosystem. This upcoming launch is poised to significantly broaden Hatom's spectrum of cutting-edge products.
The new version will also change the homepage and how everything is displayed, characterized by an even more intuitive and sophisticated user interface, anticipating a seamless navigation and interactive experience. On its release, the Hatom Platform V2 will stand as a testament to Hatom's continuous innovation, paving the way for the future of DeFi.
Status:
1. Ideation: ✅ 2. UI/UX Front-end: ✅ 3. SC's Development: ⏳ 4. Devnet Testing: ⏳ 5. Mainnet Release: ⏳
The protocols will be deployed one blockchain at a time, with a focus on achieving self-sustainability on each chain before further expansion. This approach ensures that, regardless of the distinct ecosystem of each chain, the protocol consistently offers optimal earning opportunities for users, without the reliance on liquidity mining.
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Flash Loans are an innovative concept in the world of decentralized finance that allow users to borrow funds without the need for collateral. They provide instant access to a large pool of liquidity, enabling users to borrow a significant amount of funds for a very short period, typically within a single transaction block.
Token | Total Supply | Lock Period | Vesting Period |
---|---|---|---|
Hatom has built a complete dedicated to fostering DeFi on , offering a range of products designed to shape the Defi landscape, including a , , a , and a with other communities such as . Hatom's is committed to providing users with secure, transparent, and user-friendly access to DeFi services while emphasizing scalability and security within the Blockchain.
Hatom has pioneered the development of the first non-custodial on the Blockchain. This groundbreaking protocol empowers users to engage in lending and borrowing of their crypto assets in an over-collateralized manner and allows users to unlock endless DeFi opportunities.
Hatom has diligently built its own robust indexer, a similar infrastructure, akin to "" to facilitate front-end interactions. This microservice represents the most sophisticated component of the blockchain, boasting remarkable capabilities. It can effortlessly handle a minimum of 300 requests per second, showcasing its impressive performance. Furthermore, it can accommodate up to 100,000 simultaneous users, emphasizing its scalability and ability to cater to substantial user demand.
Liquid staking is a crucial component of the blockchain, as it opens up numerous DeFi opportunities. Users can stake their assets with validators to receive staking rewards while also receiving sEGLD, a tokenized version of their position. This allows them to access the value of their assets and use it in different DeFi protocols to increase their earnings. Furthermore, our solution has a fair model that splits the liquidity fairly among all validators, making the blockchain even more decentralized.
The Chainlink-like oracle is an infrastructure that consists of two components: the t and the .
The is heavily influenced by implementation but with a few functional changes. Its main role is to aggregate price submissions from whitelisted Oracles. These Oracles are responsible for fetching prices from external sources, such as well-known exchanges, and submitting the data to the . Once a minimum number of submissions is reached (which is less than the total number of Oracles), a new median price is calculated and published by the . Similar to Chainlink's price feeds, Oracles submit prices in "rounds," which typically occur every half an hour to one hour. However, if there is a sudden price change that exceeds a predefined "threshold," Oracles are expected to resubmit a price, regardless of the time elapsed since the last submission.
In addition to the , we have developed a set of . These bots are independent and containerized, and their purpose is to submit prices to the. Each bot has its own private key, and the corresponding public key is whitelisted as an Oracle in the , granting permission to push new prices. Each bot has its own set of price providers, which may overlap with other bots. The perform two types of scheduled tasks: the "Heartbeat Task" and the "Threshold Task." The Heartbeat Task is less frequent and runs at a period defined by the round time of the . It ensures that a price is always pushed. On the other hand, the Threshold Task runs more frequently. It fetches prices from the designated sources, compares them to the last submitted price, checks if the set threshold has been exceeded, and only then resubmits the price if necessary.
is a bot that has been specifically designed to closely monitor the lending protocol. Its role is to track price feeds from the Chainlink-like oracle and the safe price, compare them, and identify any irregularities or discrepancies in the prices of the integrated assets. The bot will also autonomously pause the protocol in such occurrences and notify us for additional monitoring and necessary action.
Hatom launched a revamped and highly advanced version of the. This release solidifies Hatom's position as a prominent "DeFi Hub," offering a diverse range of cutting-edge products. Users can now access a feature-rich Lending app, a groundbreaking, a solution, and a host of other innovative products. The new platform boasts a unique and enhanced user experience and user interface, ensuring seamless navigation and interaction for our community.
successfully integrated reputable tokens such as WETH and WBTC into the ecosystem, enhancing the overall liquidity and expanding DeFi opportunities while maintaining a secure protocol.
Hatom introduces the, an innovative core module of the protocol that allows users to significantly boost their yield by staking HTM tokens. By staking just 10% of their collateralized assets in the , users can unlock additional Annual Percentage Yield (APY) on top of the base rate, enhancing their overall returns.
The , applicable across various assets, is not only integral to the lending protocol but also influences the , , xEGLD, and other forthcoming Hatom products. This interconnectivity ensures that the boosts the efficacy and appeal of the entire Hatom and it's a vital component in maximizing DeFi opportunities within , underscoring the platform's commitment to innovation and user-centric financial solutions.
The represents a significant advancement in Hatom's rewards framework, providing users with the option to claim their rewards in either USDC or HTM tokens, with the latter offering an additional 5% increase in the total claimed rewards value.
Facilitated by and integrated with with V2, this feature enables precise control over the exchange conditions as it allows users to set the slippage, thereby optimizing the reward-claiming process. Beyond enhancing rewards, the is instrumental in increasing HTM token demand and volume across the ecosystem.
Hatom introduces the TAO Bridge, a key development in the Hatom Hub, linking with . This bridge facilitates the use of TAO in various DeFi protocols within the ecosystem. The Bridge is meticulously designed to guarantee secure and efficient transfers, thus amplifying TAO's utility and it enables the integration of TAO into , where users can explore various financial strategies, including long, short, and hedging positions. Additionally, the bridge facilitates TAO's use on platforms like and , further diversifying its application within the ecosystem.
Booster V2 is Hatom's latest update to the V1 model of the , allowing broader participation beyond just HTM deposits. Users can now include LP positions with HTM/EGLD pairs and other related HTM pairs across all exchanges on MultiversX Ecosystem, as well as FarmLP and MetaStaking tokens, focusing on the HTM weight in these LPs.
This version introduces automatic rebalancing at the protocol level for greater efficiency, removing the additional transactions and gas fees required in . Additionally, Booster V2 influences , affecting delegation eligibility and the algorithm for Hatom Node Operators (HNOs). In Booster V2, Hatom Node Operators (HNOs), must hold a specified minimum amount of HTM to be eligible for delegations.
Currently, the EGLD is staked to random validators based on their score which is based on the liquidity that they have and their APR. With the launch of Booster V2 and its integration into the , the score will also be impacted by the amount of HTM each HNO has, leading to a potential increase in their delegation power.
Hatom has seamlessly integrated a robust , empowering HTM holders to play a pivotal role in the governance process. As key participants, they will have the ability to vote on multiple proposals at the same time and shape the future of essential DeFi protocols on the blockchain. HTM holders will possess a strong voting power, enabling them to make crucial decisions regarding major system upgrades, including the addition of new tokens, integration of features, and numerous other important aspects. Their active participation will contribute to the evolution and growth of the ecosystem.
, a Layer X+1 Blockchain Infrastructure, addresses the complexities of cross-lending in the DeFi space. Leveraging interoperability technologies like , , and , it unites liquidity across various blockchains and major lending protocols, including , , , and .
This integration is poised to draw liquidity from reputable chains to , significantly boosting its ecosystem's liquidity. Insights into innovative approach will soon be available on its upcoming website, providing a comprehensive overview of its vision and impact on the DeFi sector.
xEGLD is an index representing a strategy; this strategy involves using sEGLD supplied in the lending protocol as collateral to borrow EGLD. The borrowed EGLD is then staked through liquid staking to earn staking APY and receive more sEGLD, which is supplied in the lending protocol and used as collateral to continue the cycle.
is an innovative over-collateralized stablecoin, poised to be the first stablecoin on the blockchain. It operates with an independent monetary policy and is backed by a diverse array of liquid tokens within strict parameters. It will be supported by three key starting with its seamless integration into the lending protocol. This integration allows users to use their assets as collateral to mint USH, benefiting from a unique feature that provides reduced interest rates on USH minting when certain assets are used as collateral.
The second facilitator within the ecosystem is the , offering a unique approach for minting USH using EGLD and sEGLD. In these pools, users can supply EGLD or sEGLD without a supply APY, enabling them to mint USH without incurring any minting fees. The supplied EGLD is staked for sEGLD through and then used in the to generate base APY.
are the third USH facilitator, designed to deepen USH liquidity and promote interoperability with other protocols. By depositing any supported assets into these vaults, users can contribute to liquidity pools on exchanges such as , , or without needing to sell their assets. mints an equivalent amount of USH for liquidity, allowing users to earn double rewards with the user paying only the impermanent loss on the farm position.
USH will also feature a , enabling users to deposit USH and receive sUSH, an interest-bearing stablecoin. The minting fee generated through the and the rewards accrued from the nodes through the together with any fees from the will be redirected back into the sUSH index, offering a continuous and dynamic yield to sUSH holders.
1, upon its release, will strategically focus on integrating with top-tier lending protocols such as , , and possibly aiming at fostering secure and impactful connections across their respective networks. Users of will have the capability to supply assets directly to on and take a borrow through the interface from protocols such as on , enabling seamless cross-chain borrowing functionalities.
Hatom is expanding to an Omni-Chain model and deploying essential modules like the , , , , , and TAO Bridge across various blockchains, using as the main infrastructure to create a connected ecosystem. This strategic move aims to establish a dynamic, omni-chain liquidity protocol through , enhancing the usability and reach of HTM tokens.
Soul V2 is set to significantly advance DeFi, following resolution of cross-lending challenges. It will enable the use of a broader range of tokenized assets, including real estate and bonds, as collateral for loans. This integration within chain-agnostic framework allows users to secure credit lines through prominent lending protocols like and using tokenized assets as collateral, enhancing flexibility and unlocking asset liquidity. Soul V2 marks a major step in transforming RWAs into versatile financial tools within the blockchain ecosystem, streamlining access to secure, asset-backed credit lines.
Implementation of Hatom dApp SDK providing easy-to-use methods to interact with the.
Hatom will gradually be transitioning towards a full-fledged Risk DAO. This significant initiative seeks to aid the community in skillfully managing risks and capitalizing on emerging opportunities with increased assurance. Moreover, the Risk DAO will serve a pivotal role in propelling the decentralization of the , establishing a governance structure that is entirely decentralized and empowers community members to actively participate in decision-making procedures. Through the implementation of the Risk DAO, we are committed to cultivating a secure and community-driven ecosystem that fosters sustainable growth for .
Hatom anticipates that the blockchain will host multiple decentralized exchanges. To keep up with the growth, we plan to introduce Flash Loans to the ecosystem. Flash Loans represent a new form of un-collateralized lending and can introduce various economic possibilities to the blockchain.
By integrating Flash Loans into the ecosystem, several benefits and possibilities can arise.
The development and launch of the mobile app will consolidate and showcase all the products and services that Hatom has developed in accordance with its roadmap.
Public Sale
5,000,000
-
-
Private Sale
13,340,000
3 Months
27 Months (Quarterly Release)
Ecosystem
20,000,000
-
60 Months (Monthly Release)
Treasury
17,660,000
-
24 Months (Monthly Release)
Liquidity
20,000,000
6 Months
24 Months (Monthly Release)
Team
15,000,000
12 Months
48 Months (Monthly Release)
Seed Round
7,500,000
12 Months
48 Months (Monthly Release)
Advisors
1,500,000
12 Months
48 Months (Monthly Release)
as of 17/06/2023
Our development team, third-party consultants, and auditors have spent considerable effort, time, and resources to create a safe and reliable Liquidity Protocol. Our highest priority at Hatom is maintaining the protocol's security; thus, all contract codes will be made public, and all the balances will be verifiable. Also, security researchers will receive a Bug Bounty for discovering and reporting vulnerabilities. Hatom Lending Protocol is mainly inspired by the key industry leaders regarding all the protocol basics to provide a solid and secure platform.
At Hatom, we are committed to providing the highest level of security for our users. To achieve this goal, we have implemented a number of measures to ensure the safety and integrity of our protocol.
Firstly, we aim to be the Most Audited Protocol within the MultiversX Blockchain. To make this possible, we have put important resources in place and have partnered with top security firms such as Runtime Verification, Peckshield, Hacken, Certik, and Halborn, Arda and ABDK Consulting.
In addition to security audits, we are also performing, DevSecOps, and Penetration Testing for each of our products before any Mainnet Launch to ensure that every security aspect is dealt with.
To secure our launch, we have also partnered with Runtime Verification to handle the Lending Protocol's Liquidations in a secure and safe manner. The community will also be able to participate, and an initial version will be made public for anyone to participate in protecting the protocol's health.
For users who desire insurance, we’re also exploring partnerships to provide users with the option of buying coverage, which can reimburse their funds in the event of a loss.
We are also implementing our own Safety Plan, which includes a Safety Module to safeguard the protocol against unexpected loss of funds.
To increase our security, we will launch all our products on IPFS. This decentralized method of storing and accessing data helps protect protocols from exploits by providing a decentralized and distributed method for storing and accessing data. IPFS also uses cryptographic hashing to ensure the integrity of the data, making it harder for attackers to tamper with or manipulate the information stored on the network.
Regarding the Hatom Token, we have made it as dump-proof as possible. We have increased the number of VCs as much as possible so that none can have a large stake, and we also made sure it’s vested for +2 years. The Team, Advisors, and Pre-seed Angel investors all agreed to vest tokens for 5 years to prove their long-term commitment.
We are taking a unique approach to attract liquidity and incentivize money markets without relying on Liquidity Mining. Our goal is to create a sustainable structure and increase liquidity through strategic combinations of our products. This approach aims to ensure the longevity and success of our protocol in the long term while protecting the value of our Token.
Our code will be open-source, with many talented developers, including the MVX tech team, who have combed through every line.
We have also put Guardian Bots in place to protect each product in the worst of times from Potential Price Manipulation, Flash Liquidation, and Market Failure. These bots will constantly be improved, adding even more mechanisms to their programs.
Disclaimer:
Please note that this is a beta version of the Hatom Protocol website, which is still undergoing final testing before its official release. Also note that this "Docs section" is still ongoing changes and that this version was only made available to conduct testing, obtain feedback and give our users a glance at the upcoming platform. A final version will be published after the Mainnet launch of the "App."
Our Github page is private for security reasons and will only go public once audits, risk assessments, and economic verifications are completed.
The Hatom Protocol is made of a set of smart contracts that are deployed on the MultiversX Network. Using the Hatom Protocol or other products of the ecosystem involves various risks, including, but not limited to, losses from smart contract failure or under-collateralization of the protocol. Before using the Hatom Protocol, please review all documentation and achieve a firm understanding of how the protocol operates. AS DESCRIBED IN THE Hatom Labs Terms, THE HATOM PROTOCOL IS PROVIDED "AS IS," AT YOUR OWN RISK, AND WITHOUT WARRANTIES OF ANY KIND
as of 17/06/2023
Please look at our Whitepaper to better understand the Hatom Ecosystem, how it works, and what problems it aims to resolve. You will also comprehend the team’s short and long-term vision. And you'll have a clear understanding of the Hatom token and its numerous benefits.
Disclaimer: The information contained in this Whitepaper is not comprehensive and does not claim to be complete. The user will undertake every effort to ensure the accuracy or completeness of the information. All information on this Document is provided in good faith for general information purposes only. It does not constitute an offer document, a solicitation for investment, any offer to sell any product, or investment advice. In particular, the Whitepaper is not an offer and does not imply a contractual relationship between Hatom Labs LLC and an interested party.
The information provided in this Document does not represent investment advice, financial advice, trading advice, legal advice, or any advice. You should not treat the Whitepaper as such. We reserve the right to make changes and additions to their content without prior notice. Hatom is not obliged to provide recipients with access to any information beyond what is provided herein. We do not warrant, endorse, guarantee or assume responsibility for the content of the Whitepaper or any damages resulting from or in connection with downloaded information or documents. This includes both material and immaterial damage.
as of 17/06/2023
The selection of the crypto assets has been realized with the following constraints:
Reducing risks via diversification benefits by having a volume from different crypto assets in our lending pools.
Significant controls are mandatory to ensure the currency implemented will add more value than risk. Crypto assets need a fantastic product and a large community to be considered. The risk assessment investigates and decides whether the crypto assets represent a reasonable risk for the protocol, calibrating the currencies parameters to reduce those risks.
as of 17/06/2023
First, we look at smart contract security and counterparty in governance. After that, we look at market risks that can be managed via the protocol’s parameters. If these risks are too high, the protocol will disqualify the currencies.
The risk scale ranges from the Lowest risk A+ for the safest assets of the protocol (usually MultiversX) to the Highest risk D-. The assets exposed to high-risk factors can be considered for integration.
Smart contract risk focuses on the technical security of a currency based on its underlying code. If one of the supported currencies is compromised, collaterals will be affected, threatening the solvency of the protocol. Projects must have undergone audits to be considered, yet smart contract risk is significant. Bug Bounties can help, but they cannot be fully mitigated. We assess Maturity based on the number of days and the number of smart contract transactions as a representation of use, community, and development. These proxies show how battle-tested the code is. Smart contract hacks have already resulted in billions of funds lost on other networks. Accordingly, tokens with the highest smart-contract risk (i.e., D+ and below) are extremely risky collaterals.
Counterparty risk assesses qualitatively how and by whom the currency is governed. We observe different degrees of governance decentralization that may give direct control over funds (as backing, for example) or attack vectors to the governance architecture, which could expose control and funds. The counterparty risk is measured from the level of Centralization corresponding to the number of parties that control the protocol, the number of holders, and the trust in the entity, project, or processes. Currencies with a high counterparty risk below D+ cannot be integrated.
Market risks are linked to the size and offer and demand fluctuations. These risks are particularly relevant for the assets of the protocol: the collateral. If the collateral value decreases, it might reach the liquidation threshold and start getting liquidated. The markets then need to hold sufficient volume for these liquidations - sells, which tend to lower the underlying asset price through slippage affecting the value recovered.
We look at these values at one week, one month, three months, six months, and one year.
The historical data supporting the analysis is extracted from CoinGecko's API as of the 15th of January 2022 and is combined with on-chain data. The methodology to link historical data to risk factors has been formalized based on rigid criteria for each factor and rating.
The matrix below shows the figures used to quantify risks per factor. This table is based on historical data to which we have applied the above calculations.
as of 22/03/2023
Disclaimer: This is a preliminary report that will be updated soon. All identified issues have been resolved, and we are currently awaiting the release of the final report.
Uploaded soon.
Disclaimer: This is a preliminary report that will be updated soon. All identified issues have been resolved, and we are currently awaiting the release of the final report.
Disclaimer: This is a preliminary report that will be updated soon. All identified issues have been resolved, and we are currently awaiting the release of the final report.
Disclaimer: This is a preliminary report that will be updated soon. All identified issues have been resolved, and we are currently awaiting the release of the final report.
The decentralized nature of the implies risks from individual interactions with all dependent systems.
Crypto assets are at the core of the , as they enable operations and hold the assets and liabilities of the protocol. The Hatom Risk Management Team has created this documentation with a focus on assessing the risks associated with the crypto assets supported by the . The risk assessment considers the selected crypto assets' market, counterparty, and smart contract risks to contribute to higher risk standards within the DeFi space.
On , users can and crypto assets in an over-collateralized fashion through decentralized . Suppliers receive an equivalent amount of their deposit in , "which is a protocol-issued token" that gathers the interest generated. Borrowers have to deposit collateral to be able to take a loan. The collateral secures the loan and plays the role of a risk mitigation tool against default. Crypto assets are at the core of Hatom's decentralized lending operations. More details on how the protocol works can be found in .
The protocol risk of insolvency increases with each crypto asset added as collateral to the Hatom lending protocol. The assets of the are the collaterals, while the liabilities are the borrowed amounts. The crypto assets supplied and borrowed often differ, with loans mostly taken in stablecoins and collateralized by volatile tokens. This means that the protocol is strongly exposed to the failure of the supported token systems and market fluctuations.
Exposing the protocol to the centralization risk of the centralized currency accepted as collateral. The single point of failure risks of underlying crypto-assets flow into .
See the for the new asset listing process.
The composability of DeFi enables to connect with the rest of the ecosystem. However, it also exposes the protocol to financial contagion. Crypto assets used in the protocol affect it at its core, which safeguards its solvency. We investigate three levels to ensure a currency holds a reasonable risk.
We look at the average 24h volume representing the availability of the currency to assess Liquidity risk:.
The Volatility risk is based on the normalized fluctuations in the currencies price and calculated as the standard deviation of the logarithmic returns:.
This metric is in line with industry standards used by .
Cryptocurrencies can be subject to sudden volatility spikes; it is not uncommon to witness 30% changes in price within a week or a month. When this is a price increase to protect our users, it might be followed by a parameter readjustment to limit the risks of new operations. Finally, we also consider the Market Capitalization representing the market size. Market risks are used for the calibration of the model’s . The volatility helps define the required level of collateralization, the . The liquidity risks are contained by liquidation incentives: the and .
Hatom has successfully completed audits with a range of highly trusted firms. These include, but are not limited to, , , , , , , and .
as of 17/06/2023
Security is important to us, and we value the input of ethical hackers acting in good faith to help us maintain the highest standards for the security and safety of the MultiversX ecosystem. Even if the Hatom protocol has undergone professional audits and formal verification, it still depends on a new technology that may contain undiscovered vulnerabilities.
Our community is encouraged to audit our contracts and security and responsibly disclose any issue. The bug bounty program has been implemented to recognize the value of working with the community of independent security researchers and to set out our definition of good faith in the context of finding and reporting vulnerabilities, as well as what you can expect from us in return.
Rewards
Substantial rewards are offered for any discovery that can prevent the loss or the freezing of assets, harm to a user, or commensurate with the severity and exploitability of the vulnerability. According to the terms and conditions provided below, a reward of $500 and up to $150,000 will be paid for eligible discoveries.
Scope
The primary scope of the bug bounty program is for vulnerabilities affecting the on-chain Hatom Protocol, deployed to the MultiversX Mainnet, for mainnet contract addresses listed in this developer documentation.
This list may change as new contracts are deployed or existing contracts are removed from usage. Vulnerabilities in contracts built on top of the Protocol by third-party developers (such as smart contract wallets) are not in-scope, nor are vulnerabilities that require ownership of an admin key.
The secondary scope of the bug bounty program is for vulnerabilities affecting the Hatom Interface hosted at app.hatom.com that could conceivably result in exploiting user accounts.
Finally, test contracts (MultiversX Devnet) and staging servers are out of scope unless the discovered vulnerability also affects the Hatom Protocol or Interface or could otherwise be exploited in a way that risks user funds.
Disclosure
Submit all bug bounty disclosures to [email protected]. The disclosure must include clear and concise steps to reproduce the discovered vulnerability in written or video format. Hatom will follow up promptly with acknowledgment of the disclosure.
Terms and Conditions
To be eligible for bug bounty reward consideration, you must:
Identify an original, previously unreported, non-public vulnerability within the scope of the Hatom bug bounty program as described above.
Include sufficient detail in your disclosure to enable our engineers to reproduce, understand, and fix the vulnerability quickly.
Be at least 18 years of age.
Be reported in an individual capacity, or if employed by a company, reporting with the company’s written approval to submit a disclosure to Hatom.
Not be subject to US sanctions or reside in a US-embargoed country.
Not be a current or former Hatom employee, vendor, contractor, or employee of a Hatom vendor or contractor.
To encourage vulnerability research and to avoid any confusion between good-faith hacking and malicious attack, we require that you:
Play by the rules, including following the terms and conditions of this program and any other relevant agreements. If there is any inconsistency between this program and any other applicable agreements, the terms of this program will prevail.
Report any vulnerability you’ve discovered promptly.
Avoid violating the privacy of others, disrupting our systems, destroying data, or harming the user experience.
Use only [email protected] to discuss vulnerabilities with us.
Keep the details of any discovered vulnerabilities confidential until they are fixed.
Perform testing only on in-scope systems and respect systems and out-of-scope activities.
Only interact with accounts you own or with explicit permission from the account holder.
Not engage in blackmail, extortion, or any other unlawful conduct.
When working with us according to this program, you can expect us to:
Pay generous rewards for eligible discoveries based on the severity and exploitability of the discovery at Hatom's sole discretion.
Extend Safe Harbor for your vulnerability research that is related to this program, meaning we will not threaten or bring any legal action against anyone who makes a good faith effort to comply with our bug bounty program.
Work with you to understand and validate your report, including timely initial response to the submission.
Work to remediate discovered vulnerabilities promptly.
Recognize your contribution to improving our security if you are the first to report a unique vulnerability and your report triggers a code or configuration change.
Note that: All reward determinations, including eligibility and payment amount, are made at Hatom's sole discretion. Hatom reserves the right to reject submissions and alter the terms and conditions of this program.
We will also partner with Immunefi to simplify the process of reporting bugs furthermore.
as of 01/08/2023 (please refer to Github for documentation as for now)
The Hatom Protocol is a decentralized non-custodial liquidity protocol where users can participate as suppliers, borrowers, or liquidators. Suppliers provide liquidity to a market and can earn interest on the crypto assets provided, while borrowers are able to borrow in an overcollateralized fashion.
V1 of the Hatom Protocol initiates the core concepts of our project (hTokens, instant liquidity, variate rate borrowing, on-chain governance, etc..) with more exciting features coming along the road in all following areas.
Disclaimer: Please also note that this is a beta version of the Hatom Protocol website, which is still undergoing final testing before its official release. Also note that these "Docs sections" is still ongoing changes and that this version was only made available to conduct testing, obtain feedback and give our users a glance at the upcoming platform. A final version will be published after the Mainnet launch of the "App."
as of 17/06/2023
Please follow these simple instructions if you need help using the Hatom Lending Protocol:
To supply an asset, you must click the "Connect Wallet" button and select the wallet you want to use.
Once connected, select your desired asset, specify the amount you want to deposit, and click on the "Supply" button.
Wait for the transaction to confirm, and you are done!
Once you have deposited an asset, you can activate it as collateral. The process is simple, click on the "Collateral" section, click on "Add", and select the amount you want to add as collateral.
You can see that your borrow limit has increased.
Once you have supplied an asset and activated it as collateral, you can borrow an asset.
Select your desired coin, specify the amount you want to borrow, and click on the "Borrow" button.
Wait for the transaction to confirm, and you are done!
Select your borrowed asset, enter the amount you would like to repay, and click on the "Repay" button.
The process is simple, click on the "Collateral" section, click on "Remove", and select the amount you want to remove from being used as collateral.
Once the transaction has been confirmed, you can see that your "Borrow Limit" has decreased.
Once you have repaid your asset, you can withdraw the asset you have supplied by selecting it, specifying the amount you want to withdraw, and selecting the "Withdraw" button.
Wait for the transaction to confirm, and you are done!
as of 17/06/2023
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as of 17/06/2023
Here's what you should do to ensure you get the help you need :
Our Github page is in private mode for security reasons and will only go public once audits, risk assessments, and economic verifications are completed. If you still have any questions or issues, please reach out to us over the live chat within this "Docs Section" or contact us on the official discord or telegram channel.
(will be updated for new MMs) as of 01/30/2023
Every crypto asset in the Hatom Lending Protocol has defined values related to their risk, influencing how they are Supplied and Borrowed.
Risks change following the changes in market conditions. The assets integrated into the Hatom Protocol require constant monitoring as the risk parameters must be continuously adapted to the current market state. You can find below a table that tracks the parameter changes.
Hatom aims to work 3rd parties to provide dynamic risk parameters recommendations for the Hatom Lending Protocol.
The Risk Parameters can reduce the market risks of the crypto assets available on the Lending Platform. Every single loan is protected by Collateral that can be subject to volatility. For a position to stay Collateralized, it needs sufficient margin and incentives. In case the value of the Collateral decline below a threshold, a fragment of it is sold to liquidators to repay a part of the position and to maintain the loan Collateralized.
Stablecoins are the most borrowed assets in a Lending Protocol, as users prefer to use volatile assets they are long on as Collateral. This way, the users can get liquidity without closing their position and selling their assets.
Hatom’s Risk Parameters define Collateralization and Liquidation rules and help reduce market risks. These parameters are unique for each asset to solve the specific risk identified for each asset.
The maximum amount of an asset that can be borrowed with a particular collateral is defined by the Loan to Value (LTV). The (LTV) is expressed in a percentage. For example, if LTV=80%, borrowers can borrow 0.8 EGLD worth of the available assets for every 1 EGLD worth of Collateral they supply. The LTV evolves following market conditions once a borrow has been taken.
The delta between the Loan-To-Value and the Liquidation Threshold is a safety cushion for borrowers.
A Liquidation Penalty (or liquidation incentive) is the cut in price at which a liquidator receives a user’s Collateral when a Loan has passed the Liquidation Threshold.
The formula below allows calculating the Health Factor based on the Risks Parameters:
The position is subject to liquidation if Hf<1 to conserve solvency, as described in the diagram below:
The portion of borrower-paid interest (per second) that goes to the reserve. The remainder of the borrower-paid interest goes to the MM’s suppliers.
Risk Parameters are impacted the most by market risks:
Liquidity is key for the Liquidation Process; it’s based on the volume of the markets. The Liquidation Process can be prevented through the liquidation parameters: when the liquidity is low, the incentives are high.
The Collateral assures the stability of the Lending Platform and has to cover the liabilities; it is directly and negatively affected by the volatility.
The required coverage level, or Loan-To-Value, reduces the risk of the Collateral drops below the borrowed amount. The Liquidation process is also affected as the margin for liquidators has to allow for profit.
USDC Stablecoin is the crypto asset with less volatility, followed by EGLD. They both have the highest LTV at 70% and the highest Liquidation Threshold at 75%.
UTK is the crypto asset with the lowest LTV at 50%. Its Liquidation Threshold is set at 55% to prevent our users from an unexpected price drop resulting in under-collateralization followed by Liquidation.
The market size is represented by market capitalization. It is essential to the process of Collateral Liquidation. The Collateral Liquidation Process can be prevented through the liquidation parameters: when the market cap is Low, the incentives are High.
The overall risk is a rating that defines the level of risk of each Money Market separately.
as of 16/07/2023
-Devnet:
Creator Account Address:
Controller Contract Address:
Token Identifier: HEGLD-ad3c42
Token Identifier: HSEGLD-ad3c42
Token Identifier: HHTM-95320e
Token Identifier: HUSDC-2df636
Token Identifier: HUSDT-722902
Token Identifier: HBUSD-4986fd
Token Identifier: HMEX-cff5c5
Token Identifier: HUTK-08824b
Token Identifier: HRIDE-bba600
-Mainnet:
Creator Account Address:
Controller Contract Address:
Token Identifier: HEGLD-d61095
Token Identifier: HSEGLD-c13a4e
Token Identifier: HUSDC-d80042
Token Identifier: HUSDT-6f0914
Token Identifier: HUTK-4fa4b2
Token Identifier: WETH-b3d17e
Token Identifier: WBTC-49ca31
wTAO Market Contract Address:
Token Identifier: HWTAO-2e9136
swTAO Market Contract Address:
Token Identifier: HSWTAO-6df80c
is currently deployed on the on the following networks:
EGLD Market Contract Address:
SEGLD Market Contract Address:
HTM Market Contract Address:
USDC Market Contract Address:
USDT Market Contract Address:
BUSD Market Contract Address:
MEX Market Contract Address:
UTK Market Contract Address:
RIDE Market Contract Address:
EGLD Market Contract Address:
SEGLD Market Contract Address:
USDC Market Contract Address:
USDT Market Contract Address:
BUSD Market Contract Address:
Token Identifier: HBUSD-ac1fca UTK Market Contract Address:
WETH Market Contract Address:
WBTC Market Contract Address:
as of 18/06/2023
Leverage is the act of using a loan to buy more of an asset, therefore increasing exposure and potential profits (or losses).
To leverage a long EGLD position, you can supply EGLD and take USDC as a loan. You can then use that USDC to buy more EGLD. If the price of EGLD were to rise, a fragment of the EGLD bought could be sold to pay off the USDC loan, therefore pocketing the additional EGLD as profit.
I) First of all, Connect Your Wallet(1) and then select the EGLD Money Market(2).
II) "Supply" EGLD.
III) "Activate it as Collateral".
IV) "Take a Loan" in the form of USDC.
V) Go to "xExchange" and sell your USDC for EGLD.
VI) Wait for the EGLD price to rise and buy back USDC with EGLD.
VII) Go to the Hatom Lending Protocol, "Repay your Loan", and pocket the difference.
as of 17/06/2023
Decentralized Finance (DeFi) is an innovative technology at the forefront of the financial world, but it's not without potential risks. To combat these, we've implemented a Safety Module as a protective measure.
The primary function of the Safety Module is to provide a safeguard against unforeseen fund losses within the protocol. It is designed to act as a buffer, absorbing the impact of any unexpected shortfall events that may occur within the protocol. In essence, it operates as an insurance mechanism, instilling an additional layer of security to the protocol.
The Safety Module acts as a fortified barrier for the protocol. In the face of an unexpected deficit, a percentage of the staked liquidity could be reallocated to rectify the shortfall.
Users are permitted to deposit a range of assets, including EGLD, sEGLD, BUSD, USDT, USDC, WETH, WBTC, UTK, and . In return, they can earn safety incentives denominated in the , which is procured using a part of the ecosystem's revenue. In the event of a shortfall, a portion of the funds housed in the Safety Module may be tapped to compensate for the losses incurred.
Several variables, such as those associated with smart contracts, , and oracle failure, can result in unpredictable fund losses in DeFi protocols. The Safety Module has been designed specifically to address and mitigate these risks.
To provide a safety buffer, the Safety Module will initially have a pending cooldown period set at 30 days. This duration can be altered as needed through the mechanism, providing flexibility and adaptability to changing circumstances.
The stablecoin market is one of the biggest in the decentralized space, representing a possible trillion-dollar opportunity for all products that will find a market fit. Moreover, every ecosystem needs a safe and reliable decentralized base money asset to meet market demand.
In the MultiversX ecosystem, there is a shortage of stablecoins, with only a small market cap for those available. All of these stablecoins can be brought into the ecosystem only through the Bridge, which has multiple limitations and caps and which might not be suitable for everyone; this indicates a gap in the market and Hatom Protocol has the opportunity to innovate and better meet the diverse needs of DeFi users, thereby expanding the reach and efficiency of stablecoins' usability.
There are unmistakable indicators of the ecosystem's need for a native stablecoin, as evidenced by the demand observed through the Lending Protocol. During certain periods, the utilization rate has exceeded 90%, leading to borrowers paying exceedingly high interest rates. Such a scenario is unsustainable for the long-term health of the ecosystem.
A decentralized and over-collateralized stablecoin, backed by multiple strong assets, censorship-resistant, and also with the unique capability to offer a high and stable real yield through innovative avenues such as Liquid Staking, Lending Protocol, or Boosted Vaults.
The infrastructure of Hatom's Lending Protocol is already designed to support the essential features needed for a stablecoin and upon launch, Hatom is set to introduce three facilitators for its stablecoin: the Hatom Lending Protocol as the primary facilitator, Isolated Pools with zero minting fees for EGLD and dynamic minting fees for sEGLD, and the Boosted Vaults facilitator, which is aimed at significantly enhancing the liquidity of the stablecoin within the ecosystem.
Transparency: Decentralized, over-collateralized stablecoins offer a transparent ecosystem where all financial operations and collateral statuses are openly recorded on the blockchain. This system allows users and auditors unlimited access to validate the health and fairness of the stablecoin, promoting an environment of trust and security.
Stability: By providing collateral that exceeds the value of the stablecoin in circulation, Hatom ensures that the coin's value remains stable against its peg, despite market fluctuations. This over-collateralization acts as a safeguard, providing users with confidence in the stablecoin's purchasing power.
Censorship Resistance: Leveraging decentralized technology, these stablecoins operate beyond the reach of centralized authorities, offering a financial instrument that is resistant to censorship. This ensures that transactions and participations are uninhibited by geopolitical and institutional constraints, affording users global access and financial sovereignty.
Yield Generation: sUSH introduces a competitive and stable yield opportunity through its interest-bearing model. This feature enables holders to generate earnings on their stablecoin holdings, enhancing the value proposition of sUSH within the DeFi landscape by providing a mechanism for passive income generation alongside asset stability.
Currently, stablecoins can be broadly categorized into three distinct groups: those backed by fiat currencies, others backed by cryptocurrencies, and those that rely on algorithms to uphold price stability. The primary distinctions among these categories stem from the underlying backup that determines their value, the collateral necessary for their issuance, their methods of issuance, and the strategies employed to maintain their price stability.
USH is purposefully designed without a centralized locus of control. The governance of USH is vested in the hands of the Hatom Protocol Community and Hatom Governance. This arrangement ensures a higher degree of transparency for USH compared to other market counterparts. Any updates or modifications to the protocol, including changes in interest rates or risk parameters, are made public. These changes require prior consensus from Hatom Governance before implementation, ensuring a democratic and transparent process.
Decentralized Stablecoins | Centralized Stablecoins | Algorithmic Stablecoins |
---|---|---|
These promote an unprecedented level of transparency and resistance to censorship, upholding the principles of privacy and the core values of decentralization.
Users must place their trust in the stablecoin issuer. Such stablecoins are subject to potential blacklisting and may have less transparent backing structures.
These rely heavily on algorithmic formulas to regulate supply and demand, seeking to maintain stability in fluctuating markets.
as of 17/06/2023
We call borrowing the operation of taking a loan from a lending protocol by taking tokens out of a pool of assets. In the opposite of Lending, which is supplying tokens to a pool of assets.
Selling your asset pushes you to close your position on that asset. If you are long on the asset, you would not be entitled to the potential upside value gain. When you Borrow, you can get liquidity without selling your asset. Users usually Borrow to leverage their holdings, make new investment opportunities, or unexpected expenses.
To Borrow, you have to deposit an asset to be used as collateral. Once you have deposited your collateral, go to the supplying section of the «App», and select the asset you want to Borrow. Select the amount you wish to Borrow and confirm your transaction. The amount you can Borrow depends on the amount you have deposited and used as Collateral.
The max amount that a user can Borrow depends on the amount of Collateral deposited and the token's Collateral Factor. The Collateral Factor - expressed as a percentage - is a multiplier used against your supplied assets.
The maximum amount you can Borrow also depends on the available liquidity. For example, you can’t Borrow an asset if there is insufficient liquidity or your Health Factor doesn’t allow you to.
You have to repay your loan using the same asset you borrowed. For example, if you Borrow 1 EGLD, you must repay 1 EGLD plus the interest accrued. If you want to pay back your loan based on USD price, you can Borrow USDC stable coin.
We have implemented an additional feature called Repay Dust, that if enabled within the transaction, will save you both Time and Fees. Repay Dust let you get rid of the whole accrued interests, even those accumulated within seconds when the transaction was being broadcasted. Read more about this last feature here.
The rate is Variable. It is based on the Supply and Demand in Hatom Protocol. The variable rate will vary depending on market conditions over time and could be the optimal rate.
The Interest Rate you have to pay for borrowing assets is based on the Supply and Demand ratio of the asset. The interest rate of each asset changes constantly depending on market conditions. The current interest rate is available in the borrowing section of the «App».
The Health Factor is a numeric representation of the safety of your deposited assets against the borrowed assets and their underlying value. The higher the value is, the safer your funds are from being Liquidated.
A multiplier represents the Liquidation Threshold. For example, HealthFactor
of 0.9 means that if the amount you borrow is worth (at least) 0.9 of your collateral, your position is subject to liquidation. Must follow: CollateralFactor <= HealthFactor
< 1.
Note that : HealthFactor
also refers toLiquidationFactor
.
The Health Factor will increase or decrease depending on the Value Fluctuation of your deposits. An increase in your health factor will improve your Borrow position by making the Liquidation Threshold more unlikely to be reached. If the value of your collateralised assets against the borrowed assets decreases instead, the Health Factor will also decrease, thus increasing the risk of Liquidation.
There is no specific time to pay back the loan. You can keep the loan as long as you want if your position is safe.
Keep in mind that the accrued interest will increase as time passes, making your Health Factors decrease and increasing the Liquidation risk of your assets.
You can pay back your loan by going to the 'Borrowings section' of your Dashboard, selecting the asset you have borrowed, and clicking on the repay button. Select the amount you want to pay back and confirm the transaction.
When repaying your total loan, you may find some "Dust" left from the loan that you still need to repay. It has been generated while you were paying back your loan as the interest gets accrued every second.
You can remove that dust by clicking on the "Max" button and making sure that the "Repay Dust" box is selected. A transaction with a slightly higher amount than what is due will be sent, the total of your loan will be repaid, and the small difference left will be sent back to your wallet during the same transaction.
For example:
-Let's suppose that you want to repay your loan of 10.1 EGLD.
-You will go to the "Repay" section, click on "Max" and make sure that the "Remove Dust" box is selected.
-Once you click on "Repay", a transaction of around 10.1101 EGLD will be sent.
-After you confirm the transaction in your wallet, your total loan will be paid, and you will receive back approximately 0,0101 EGLD in your wallet.
There are two options to avoid Liquidation. You can either repay your loan or deposit more assets to increase your Health Factor. Repaying the loan is the option that would increase your Health Factor more.
Although the process of interacting with USH in the Hatom Lending Protocol shares similarities with other assets, there are notable distinctions in how USH is implemented and how users interact with it within the USH pool. These differences are specifically designed to ensure the price stability of USH.
Unlike the other assets within the Lending Protocol, USH operates differently. It is minted and burned by the smart contract each time a user borrows and repays it. While USH can be provided in the Lending Protocol and utilized as collateral, it's essential to understand that the supply APY for USH remains fixed at 0%. However, if extra rewards are introduced to the USH Money Market, those who utilize it as collateral could earn these additional rewards.
The USH minting interest rates and discount rates are determined through Governance. Periodically, Hatom Governance has the authority to adjust the interest rates in order to ensure stability following the supply and demand dynamics.
In the Hatom Lending Protocol, users must supply assets into their respective money markets for others to borrow them. This ensures that if a user wants to borrow USDC using collateral, liquidity in USDC must have been provided by another user within the protocol.
However, this mechanism does not extend to USH. Specifically, users wishing to borrow USH can do so without a previous user supply of USH in the market. The protocol uniquely mints USH on-demand for borrowers, and upon repayment, the USH is burned, eliminating the need for supply-side liquidity for this asset.
Users can use certain assets offered on the Lending Protocol as collateral for minting USH. The quantity of USH they can mint is determined by the value of their collateral and its corresponding collateral factor.
Through the Lending Protocol, all assets allowed to mint USH will be assigned a fixed discount rate. However, these rates will not be uniform across all assets; some will have a low discount rate, while others will have a higher one. Despite the varying amounts of USH minted through this facilitator, these rates will remain constant. Consequently, users can precisely calculate their annual loan payments, as the utilization rate will not affect these calculations.
The Isolated Pools will offer a convenient way for the users to mint USH without any minting fee. This approach simplifies the minting process, making it more accessible and cost-effective for users interested in leveraging their EGLD or sEGLD assets.
It will feature some novel implementations, where both EGLD and sEGLD provided by the users are used in the Liquid Staking and Lending Protocol to generate yield which is then injected into the Staking Module ensuring constant growth of sUSH relative to USH.
The Boosted Vaults will come with no minting fee for USH, but users will be charged a small fee for the rewards earned through this type of under-collateralized yield farming strategy.
(will be updated for new MMs) as of 01/30/2023
The results of the Risk Assessment Methodology are shown in this section, and an analysis has been made for each crypto asset that has been considered.
The table below shows the risk ratings per asset computed by our Risk Assessment Methodology after being applied to our historical data. This update was made on April 2022 and reflected the recent market volatility and considerable growth in use with some tokens.
USD Coin (USDC) is a digital currency backed by U.S. dollar assets. USDC is a tokenized U.S. dollar, with one USDC coin pegged 1:1 to the value of one U.S. dollar. The value of USDC is designed to remain stable, making USDC a stablecoin.
USDC Smart contract Risk: A-
USDC on the MultiversX Blockchain is called Wrapped USDC and has only been active since the 12th of November 2021, with already over 682,089 transactions.
USDC Counterparty Risk: B
USD Coin is a stablecoin pegged to the U.S. dollar on a 1:1 basis. Every unit of this cryptocurrency in circulation is backed up by $1 that is held in reserve, in a mix of cash and short-term U.S. Treasury bonds. The Centre consortium behind this asset is a trusted entity in the ecosystem and is audited monthly by Grant Thornton.
USDC Market Risk: A+
There is a high trading volume for USDC on the xExchange reaching millions daily. USDC is a stablecoin backed by real USD, leading to low volatility.
The MultiversX eGold (EGLD) Token is the native token of MultiversX Network and is used for everything from staking, governance, transactions, smart contracts, and validator rewards. The MultiversX Blockchain is a highly scalable, fast, and secure blockchain platform for distributed apps, enterprise use cases, and the new internet economy.
EGLD Smart contract Risk: A+
The EGLD token was launched on the 30th of July 2020; it has more than 39 million transactions and almost a 4 billion market cap.
EGLD Counterparty Risk: A+
EGLD is non-custodial and open source, with nearly 1,449,128 holders, presenting a low centralization risk.
EGLD Market Risk: A
The core fuel of the MultiversX Blockchain, EGLD, has a high trading volume reaching hundreds of millions daily. It is a well-known currency available on all major exchanges and has rather low volatility.
MEX is the token powering the xExchange (Maiar Dex). It is required for the governance of the decentralized exchange platform as fuel for the perpetual decision-making process that will maintain the Maiar DEX ahead of the curve in terms of innovation, operational model, listing policies, and other actions aimed at creating a sustainable value cycle for its stakeholders.
MEX Smart contract Risk: B+
Mex has been active since 19th November 2021, with over 7 million transactions.
MEX Counterparty Risk: B
MEX is the governance token of the Maiar exchange; it has already reached 50,506 holders and has a large community using its exchange daily.
MEX Market Risk: B+
The community has well received the MEX token. The price was quite stable but decreased by 50% during the bear market; it is now stable again.
The Hatom Token is at the heart of the Hatom Protocol Governance System. A percentage of the revenue of the Hatom protocol has been dedicated to a yield staking of the Hatom Token.
HTM Smart contract Risk: B-
HTM launched on 14th July 2022, with nearly 800,000 transactions.
HTM Counterparty Risk: B
The Hatom Token is the governance token of the Hatom Protocol, a 100% community-driven lending protocol. Hatom Token already has more than 68,000 holders.
HTM Market Risk: B
Hatom Token has seen an increase in its price short after being launched; it has then stayed stable. The token price has shown low volatility during the last months.
The RIDE token is the utility token of the Holoride platform; it is fundamental to its ecosystem. Digital items, upgrades, and all services of the Holoride platform will be purchasable in RIDE tokens with a discount compared to their Fiat price.
RIDE Smart contract Risk: B-
RIDE launched in November 2021 with 130 million RIDE tokens as an initial circulating supply; It has reached 561,010 transactions until now.
RIDE Counterparty Risk: B
RIDE is essential to the governance system of the Holoride platform. The number of RIDE token holders is around 40,350.
RIDE Market Risk: B-
Ride token price has seen multiple sudden variations since its launch. It has remained pretty stable during the last few months, but it may be subject to unexpected changes in price.