Bristol, UK, Nov 24, 2021 - (ACN Newswire) - Hector DAO is launching algorithmic decentralized stablecoins instead of using centralized coins such as USDT and USDC. HECTOR is a fork of OHM built on the Fantom Network, allowing it to utilise the speed, security, and scalability that Fantom offers. Today, the crypto market has become mainstream with its adoption at an all-time-high. However, when Satoshi Nakamoto invented Bitcoin, he expected it to be truly decentralized. Today, a majority of the crypto market is centralized in one way or another. Even the Defi markets consist of several protocols which are highly centralized in nature. Hector DAO aims to change that with a truly decentralized ecosystem of its own.
This is due to the so-called stablecoins often fluctuating during market volatility, and on the other hand the US Dollar it is backed against continues to decline in value due to rising inflation. Stablecoins have increasingly grown to become a key liquidity provider for the market. For trading, the majority of popular crypto tokens are paired with stablecoins such as USDT. However, as the size of the market has grown, so have the complexities surrounding stablecoin issuance.
Thus, to achieve true decentralization, Hector will use a reserve currency in the form of $HEC. It will be backed and collateralized by Hector DAO protocol. To maintain price stability, Hector will employ the Algorithmic Reserve Currency algorithm, which will be supplemented by other decentralised assets. $HEC is not a stablecoin. It utilises fractional treasury reserves to extract intrinsic value. Hector, becoming an algorithmic reserve currency, will therefore provide free floating value.
Core Areas of Hector DAO
Hector DAO is a DEFI governance token and thus every aspect of it is decentralized and governed by the native token. The community behind HECTOR DAO is one of its most powerful components. The way the development team interacts with the community, and how the community responds to the development team, is one of the first things a potential investor will notice about a project.
The HECTOR Team makes it a priority to be open, responsive, honest, and knowledgeable at all times. The HECTOR Team has developed and customised campaigns to encourage, reward, and recognise community members and groups who go above and beyond to be helpful, positive, and insightful.
Liquidity Pool fees and Bond sales increase Hector's treasury revenue. They also help to control HEC supply by locking in liquidity. Bonds enable investors to purchase HEC tokens at a reduced price. The trade-off is that the HEC tokens purchased will be claimable over a 5-day period. The continuous treasury inflow is increasing the Treasury Balance and backs outstanding HEC tokens and regulates staking APY.
APY refers to Annual Percentage Yield. It utilises a real rate of return through compounding interest. APY relies on the sale of DAI bonds in order to mint new HEC tokens. If sufficient bonds are sold, then high APY rates are sustainable. If the protocol aims for 10,000% APY, and 10,000 HEC tokens are staked, 20dow to HEC tokens need to be minted daily in order to achieve SHEC the APY; (Roughly 2% growth a day). If there are at least 200 HEC tokens brought into the protocol from bond sales, the APY is sustainable. The APY can be high due to compounding interest.
Hector DAO Staking and Passive Reward System
Being a decentralized protocol, staking is one of the core functionalities of Hector DAO, users can stake their HEC into a treasury backed token, and earn compounding yield. At the moment, each epoch pays a yield of approx 0.8%. There are 3 epochs a day. (Every 8 hours) The current APY is sitting around 800,636.6%. This equals to a 5-Day ROI of 12.8481%, and an epoch yield of 0.8492%.
Once HEC is staked, the user's balance will rise in tandem with the circulating supply, implying that even if they miss out on a lower price, their HEC balance will rise as a result of the staking protocol. As a result, even at a higher price, they will generate a staking income, lowering their risk.
The protocol will print more HEC tokens in order to pay out staking rewards, and each new HEC token printed will be backed by the treasury. At the moment, HEC has 5 bond types, with more being added soon. At this stage, there is no need for Hector to be audited as HEC is a fork of OHM contracts, however, a further audit will be conducted in the future. This means the protocol has already been audited twice: One by Peckshield and one from Omniscient.
To learn more about The Hector DAO visit Hectordao.com
Mr Henry Davis, The Hector DAO
SOURCE: Hector DAO
Topic: Press release summary
Source: Hector DAO
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