Since their inception in 2014, stablecoins have gradually found increasing acceptance in the crypto space. This launch spawned several stablecoins in different categories such as the fiat-back stablecoins, Tether USDT, USD Coin (USDC), Binance USD (BUSD) and others. There are also algorithmic stablecoins like USDD, commodity-backed stablecoins like PAX Gold (PAXG), and crypto-backed stablecoins like DAI.
Stablecoins offer greater stability than more volatile crypto assets like Bitcoin, Ethereum, and others. But no token has perfectly demonstrated stability in all respects. Therefore, the stablecoins sometimes unpeg or fall below their supportive levels, breaking the essence of stability.
Such issues led to the emergence of Destablecoin, a new type of asset class in the crypto industry. HAY is the first destablecoin to power the operation of the Helio protocol. The detablecoin is fully decentralized and strives to address the underlying risks associated with stablecoins.
What is the Helio protocol?
The Helio protocol is an open-source liquidity protocol that facilitates staking, borrowing, and generating returns on HAY, a destablecoin. The Helio protocol is deployed on the BNB chain, supporting the new and innovative BNB-backed detablecoin.
The protocol is positioned to support the enhanced version of stablecoin projects as it optimizes security and capital efficiency while protecting the decentralization element of the new asset class.
Helio Protocol; A multi-layered platform
The Helio protocol is a multi-layered platform capable of performing various functions; Below are some of its features.
- The protocol supports asset collateralization, instant conversions, detablecoin staking, borrowing, and yield farming.
- It ensures greater capital efficiency as HAY is a fully redeemable detablecoin.
- It is a dual token model consisting of a governance token (used for decision making) and a rewarding destablecoin (used to generate income).
- The Helio protocol facilitates external DEX integrations that allow users to participate in different liquidity pools to generate more revenue.
In summary, the core functionalities of the Helio protocol include the following:
- Collateralization of BNB or BUSD.
- Withdrawal of Collateral.
- Farming of HEU
- Loan from HAY.
- Participate in protocol governance with HELIO.
- Earn rewards in HELIO for borrowing HAY from TGE.
Components of the Helio protocol
Here are the three main components of the Helio protocol.
- Collateral – Users can use their BNB tokens as collateral to participate in the broader Helio ecosystem. You can participate in the Binance crypto exchange through BNB Liquid Staking Services. Also, they could earn a reward for their collateralized BNB tokens.
- Lend – Users with secured BNB positions can borrow via the Helio protocol, payable in HAY destablecoins.
- Earn – The protocol accumulates the interest and staking rewards from collateralised BNB tokens within the Helio Revenue Pool. The pool then distributes the HAY rewards to liquidity providers and stakers. Typically, the yield for users increases with the time they wager or hold HAY tokens.
HAY Detablecoin – A new asset class
HAY is a destablecoin, a new and innovative asset class launched by the Helio protocol. It is over-collateralized by BNB and is the first-of-its-class token in blockchain history. It was launched on the BNB chain, the second largest blockchain ecosystem in terms of TVL, offering broader adoption potential for the asset. The high security and low gas fees at BNB Chain are also an additional advantage for HAY.
Users can get HAY by providing BNB as collateral so they can borrow HAY. Once they have HAY, they could use the destablecoin for long-term returns. Also, they could move HAY to other external log pools integrated with Helio log for more yields.
What are the differences between stablecoin and detablecoin?
Detablecoin differs from traditional stablecoins, which are quite popular in the crypto industry. Here are the two main differences.
- Destabecoins are fully decentralized. The prefix “de” in the word stands for decentralization. This does not mean a perfectly stable asset; It is a decentralized token with some associated risks. With crypto-backed stablecoins, their collateralization is based on centralized crypto assets. But HAY uses decentralized assets as collateral.
- Unlike stablecoins, detableoins achieve broader stability without being absolutely tied to fiat currencies. Although designed to keep it close to the USD price, it is not directly pegged to fiat currency.
Diploma
Detablecoins are decentralized stablecoins that are redefining and correcting the use and functionality of stablecoins in the DeFi ecosystem. They strive to maintain broader stability without absolute ties to fiat currencies while maintaining the sanctity of decentralization. This new asset class aims to disrupt the broader stablecoin industry with this new asset class while offering appropriate trades and transactions that reduce volatility just like fiat currencies like USD.
Learn more about the Helio Protocol at – https://helio.money/
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