Cryptonary - Hundred Finance – A multi-chain lending protocol
Primer: Acidbird and TerraBellus are part of the Hundred Finance team. In this episode of Cryptonary, host Stan Colenbrander speaks with the duo to learn more about their background, Hundred Finance, their tokenomics and the partners they are integrating with.
Background
Acidbird
Has a background in operations
Was introduced to BTC in 2009
Got busy and only returned to the space in 2017
Started exploring the different projects
Got to know the other team members (e.g. vfat, TerraBellus, etc.) through the Synthetix degen trading channel
TerraBellus
In 2017, he was working as a professional academic researcher
Crypto provided a kind of escape for him
Got into various aspects of crypto. In particular, he was interested in IPFS
Is currently on the Synthetix Spartan Council, which manages the platform
Getting To Know vfat
There was a site that was created by another dev that is kind of like an early version of vfat tools
That website closed down and vfat made his own version, creating an incredible database that provides really accurate APYs on the latest yield farming products
How Did They Come Up With Building Their Own Protocol?
There was another project called Percent Finance, which they were involved in
Something went wrong and the project shut down
Decided to relaunch Percent Finance. That was when the idea for Hundred Finance came along
Acidbird was invited to run the community
The team started to grow
What Is Hundred Finance?
A borrowing and lending platform
They have a multi-chain vision and they intend to launch on as many chains as possible
They are a fork of Compound Finance
Their protocol has deep liquidity due to their incentive mechanisms
They incorporated the Curve escrow tokenomics model. This allows people who hold a vote escrowed version of the HND token to have an influence over where further HND rewards go
For example, they found that a lot of users favour UST on Harmony
They will be launching UST on Fantom soon
Why Did They Not Launch On Ethereum First?
Their mission is to support smaller chains first
They initially launched on Arbitrum because that was around the time of Arbitrum’s launch. In doing so, they are one of the first lending protocols on Arbitrum
After that, they launched on Fantom, Harmony, and Moonriver
They will be launching on Gnosis (formerly xDai) and Optimism soon
They are using Chainlink price feeds. Hence, they can only launch on chains that have integrated with Chainlink
Their goal is to launch on 1-2 chains per month
Later this year, they will introduce multi-chain lending — users will be able to supply assets on one chain and borrow against those assets on another chain
They are testing veHND mirroring — HND locked on one chain can be used on another chain
“There are a lot of opportunities [multi-chain lending] out there and no one did it yet. So we are kind of pioneering the tech and developing it from scratch.”
- Acidbird
The Idea Behind Their Tokenomics
Many lending platforms incentivize users to both provide and borrow assets
However, in the long-term, this adds a great deal of sell pressure on the native token of the platform
Curve tokenomics revolutionized the space, where users lock their tokens for a longer period of time in order to receive ongoing incentives. This reduces sell pressure tremendously while incentivizing further locking of tokens
Do They See Stablecoin Protocols Buying Up Their Token To Incentivize Their Stablecoins?
Already seeing it happening
They had 2 governance votes that allowed veHND holders to vote on which vetokens they will integrate first
The first vetoken that they will be integrating is a multi-chain Convex-like platform
Had passed a proposal to integrate Liquid Driver
How Did They Get To Know The Liquid Driver Team?
vfat brought a great deal of contacts through his vfat tools site
Liquid Driver is one of the many projects they are talking to
Their partners on Fantom include Beethoven X and SpookySwap
Their Growth In The Fantom Ecosystem
When they arrived on the Fantom ecosystem, people already knew about them as they have established themselves as a protocol in Arbitrum previously
It was at that point when their marketing and community started to grow faster
Andre Cronje’s Solidly Exchange helped bootstrapped the Fantom ecosystem in general
Their partnership with Beethoven X helped introduced them to the Fantom community as well
They became very busy as the community grew
What Is The PCT Token?
It belongs to Percent Finance, the predecessor of Hundred Finance
Holders of the PCT token can swap it for HND token and get 10% of HND immediately, with the remaining 90% vested over a year
It was a kind gesture to those who were still holding on to their PCT bags after Percent Finance shut down
Their Bond Program
Moonriver bonds are provided by Rome DAO
Their Integration With Fuji DAO
Fuji DAO is an aggregator for lending protocols
This integration helps bring more people to Hundred Finance
Will They Focus Only On Lending/Borrowing Or Will They Expand To Other Products In The Future?
They are definitely going to focus on lending
They are planning integrations and partnerships
What Are Some Of Their Partnerships That Are Coming Soon?
DODO Exchange on Arbitrum
Rome DAO on Moonriver
Do They Foresee Some Integrations Ending Up Badly?
They are very much in favour of working in the interest of HND holders
Do not like to publicize protocols that provide yield by dumping HND tokens
What’s The State Of Their DAO Right Now?
The veHND token is the main governance token for Hundred Finance
Partially in DAO mode as people can vote with the veHND tokens
Will be giving more control over the protocol to veHND holders later this year
Holders will be able to decide on fee sharing and other milestones
Their strategy is to distribute HND across various chains and to onboard community members
Are There Any Projects That They Are Excited About?
Acidbird
Acidbird likes the LooksRare NFT marketplace — an NFT marketplace and competitor to OpenSea
He also likes Stargaze on Cosmos. It’s an upcoming NFT marketplace and STARS is the ticker for their token
TerraBellus
Is very active on Synthetix. Is on the Spartan Council that manages the Synthetix protocol
Has been using Synapse and Multichain a lot for bridging
Interested to see the role of NFTs in DeFi and how that’s evolving
Incorporating NFTs into gaming
Where Can Listeners Go To Learn More?
Join their Discord. They are very active there
Their docs is the best place to learn about Hundred Finance
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