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We are very excited to share that the mainnet of Helio Protocol was successfully launched on the 19th of August. Check out this article to find out more about Helio Protocol and our BNB-backed destablecoin, HAY and how we intend to disrupt the entire stablecoin landscape.Allow us to introduce ourselves, and share what we aim to achieve with our project.IntroductionThe advent of stablecoins was a significant step forward in the development of the wider cryptocurrency market. We first welcomed the arrival of fiat-backed stablecoins such as USDC, BUSD and USDT, who brought a non-volatile, digital form of currency. Since then, the community has viewed stablecoins as integral for mass cryptocurrency adoption, as existing coins such as BTC or ETH were not entirely suitable to be used as a form of currency for transaction due to its price volatility. However there were significant drawbacks that prevented the entire acceptance of these stablecoins. Opponents have called out the lack of capital efficiency and the inherent centralization required as contradictory to the DeFi ethos, and were reluctant to accept that these stablecoins were the best that the community had to settle for.Decentralized stablecoins were then invented as means to overcome these hurdles. As the name implies, decentralized stablecoins does not have a central custodian, and offers more propensity for greater capital efficiency as investors can typically get higher yields from further DeFi activity such as liquid staking. Unfortunately, there have been recent setbacks and challenges faced within the decentralized stablecoin industry that have challenged the entire premise of decentralized stablecoins - can we truly have a decentralized stablecoin that offers assurance of stability, yet sustainable yields?Additionally, the term “stablecoin” or even “algorithmic stablecoin” is generally a misnomer, as all stablecoins, including fiat-backed ones, have potential to de-peg and become volatile, albeit to a much lower extent. The stablecoin industry is under constant scrutiny due to many retail investors over-investing under the allure of constant stability and becoming vulnerable to significant financial loss during such an event. Using the term “destablecoins” signals the underlying risk of stablecoins and encourages users to invest more responsibly, building a far healthier and more sustainable ecosystem of users.Therefore, we believe that the term “destablecoins” (in which “de” stands for decentralized) more perfectly and accurately mirrors what the team had envisioned for our new product, HAY. Going forward, Destablecoins will be an entirely brand new asset class of digital tokens, and HAY will be the first of its kind to be launched on the market.Helio ProtocolHelio Protocol is an open-source liquidity protocol for borrowing and earning yield on HAY - a new BNB backed, over-collateralized and an entirely new asset class in crypto called “destablecoins”.Destablecoin is a new type of asset class within the crypto space that seeks to label a more accurate term in the current stablecoin landscape. The prefix “de-” stands for decentralized - it does not signify price volatility the way assets such as BTC experience. Destablecoins utilize decentralized, liquid staked, crypto assets only as collateral and do not aim to achieve absolute price stability with fiat-based currencies such as USD. While destablecoins are not fully volatile assets, it will allow for some price fluctuations as regular fiat-currencies would experience with varying reference rates and interest rate parities as defined by the open market.Built on the BNB Chain, Helio Protocol consists of a dual token model and mechanisms that support instant conversions, asset collateralization, borrowing, yield farming, and staking. Helio Protocol aims to deliver an improved version of already successful projects by further optimizing on safety and capital efficiency. The protocol aims to achieve this by leveraging Proof-of-Stake (PoS) rewards, liquid staking and yield-bearing assets. Following the launch of our governance token, HELIO, Helio Protocol will also operate as a DAO, where the community will govern the protocol’s treasury, revenue pool and future direction.HAY DestablecoinHAY is a non-custodial and over-collateralized destablecoin, that is backed by liquid staked BNB. To borrow or obtain HAY, users will have to provide BNB in the form of collateral by interacting with Helio’s protocols. Upon launch, HAY will be issued as a BEP-20 compatible token. It’s use cases include the following:1. Borrowing of HAY<ul><li>Users who have deposited BNB on the Helio Protocol (CeVault) are eligible to borrow HAY</li><li>The operations of borrowing HAY, repaying the loan (with interest) and withdrawing the original collaterals are all governed by a set of smart contracts.</li></ul>2. Liquidity Mining: Via 3rd party LPs on DEXes (PancakeSwap proposal <a href="https://pancakeswap.finance/voting/proposal/bafkreigsogu3xydumv3qyih7lwjymxjxyuejiwsrvz47v5ytpk7xk6m43u" rel="noopener noreferrer nofollow">here</a>)3. Payment: As means to transfer value, purchase goods &amp; services.Loan-To-Value Ratio &amp; Liquidation ProcessThe initial maximum LTV (loan-to-value) ratio will be 66% (collateral ratio of 152%), meaning users can borrow HAY up to the equivalent of 66% of the value of their collateral. Should the price of collateral fall and the LTV ratio rises above the limit, the liquidation process will kick in.Users can liquidate their holdings if they see a liquidation process due, as the borrowed HAY value becomes higher than the current worth of user’s collateral with safety margin, and receive a flat fee (tip) and a dynamic percentage (chip) simply for starting a Dutch auction, which is the core component of the liquidation process. It is an opportunity arising in the liquidation process, and any Helio user can do it. Besides this opportunity, anybody who restarts the Dutch auction receives the same reward (chip &#43; tip) for doing it.Improving Capital efficiency &amp; Liquid StakingHelio Protocol will be incorporating the BNB liquid staking mechanism into our system, which is an improved and more efficient method compared to the traditional staking mechanisms. With BNB liquid staking, users are no longer required to lock their assets up with a central node. This removes the disadvantage of having assets that are “illiquid” which can’t be utilized or spent elsewhere.This is achieved by providing instant liquidity for staked assets in the form of Liquid Staking (hBNB) tokens. The hBNB tokens can be utilized in many ways, such as liquidity mining and further farming opportunities etc.Additionally, Helio protocol will also deploy the yield-bearing mechanism to allow users to take advantage of their interest-bearing position by borrowing against it. In staking the collateralized BNB in the Helio Protocol, BNB will be automatically converted into aBNBc yield-bearing tokens. These tokens will increase over time to reflect staking rewards, meaning 1 aBNBc will grow in value when compared to BNB.Therefore, with these newly introduced mechanisms, Helio Protocol is able to provide greater capital efficiency due to HAY being a fully redeemable asset with a strategy to generate yield against BNB collateral while reducing illiquidity risks.Risk ManagementSafety and risk management has always been a top priority for Helio Protocol, where we have several systems in place to ensure the integrity and security of our assets. This includes an initial debt ceiling, meaning a maximum minting cap for HAY with respect to the market cap of the collateral (BNB). We have also deliberated and decided on a conservative LTV ratio of 66%, which allows a ~34% buffer for any change in price with respect to BNB collaterals. On top of that, we have a Liquidation Alert System (LAS) in place that borrowers could subscribe to, so as to notify them should their positions be at risk of liquidation. Last but not least, Helio Protocol has in place an emergency shutdown mechanism which acts as the last line of defense against any potential attacks or exploits on our infrastructure.To find out more about Helio Protocol, do follow our social channels to keep up with our latest updates! Exciting events and perks will be announced soon as part of our launch, so don’t miss out!What kind of other content would you like to see? Let me know!<a href="https://twitter.com/Helio_Money" rel="noopener noreferrer nofollow">Twitter</a><a href="https://discord.com/invite/k5JZVQYpUn" rel="noopener noreferrer nofollow">Discord</a><a href="https://t.me/helio_money" rel="noopener noreferrer nofollow">Telegram</a><a href="https://helio.money/" rel="noopener noreferrer nofollow">Website</a><a href="https://helio.money/static/whitepaper.pdf" rel="noopener noreferrer nofollow">Whitepaper</a>

Introducing Helio Protocol and HAY - a revolutionary destablecoin on the BNB chain

Lista DAO

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