Hundred Finance Community Call (8 December 2021)
Primer: Hundred Finance aspires to be a cross-chain lending platform. On 8 December 2021, the team hosted a community call and shared with listeners about the recent updates they have implemented — vote-escrowed HND (veHND), findings from their partner, B.Protocol, and the various chains they are looking at.
Primer On Vote-Escrowed HND (veHND)
HND token can be locked for up to 4 years
1 HND locked for 4 years = 1 veHND (vote-escrowed HND)
As time passes, veHND balance will deteriorate towards zero. At the zero point, HND becomes unlocked for holders
Currently, veHND can be used to vote for rewards distribution. In the future, it will grant holders rights over the protocol
veHND is used to compute APR boost, with higher veHND balances earning more from farming
Users can only have 1 lock duration. Any additional HND that is locked up will have the same expiry date as existing veHND. Users are free to extend their lock duration up to a maximum of 4 years
Gauge System
1 gauge is created per stablecoin market
Users can stake their stablecoins and they receive hTokens in return (e.g. hUSDC, hFRAX, etc.). These hTokens could be further staked to earn HND
Gauges are organized in weekly epochs, where rewards are set to a fixed amount each week
Rewards are distributed based on the amount of veHND that voted for each gauge
Votes are reset in the next epoch after voters have voted
Boost System
💡 Boosting is the act of locking your HND to earn more HND on your provided liquidity.
Boost is calculated based on:
The user’s veHND balance
The total veHND balance
The user’s gauge balance
The total gauge balance
A higher boost/veHND balance leads to larger rewards
While locking more veHND, holders have to perform a transaction for it to take effect in that particular gauge
Planning to release a boost calculator for users to see how much more HND they need to lock in order to get the full boost
Next Steps For veHND
Launch veHND on Fantom
Launch veHND on other chains
Setting up veHND mirroring for cross-chain governance
veHND Mirroring
Normal tokens are not suitable for cross-chain governance as they are transferable
In contrast, veHND is non-transferable
Mirroring involves copying user’s current veHND position from various chains into a special mveHND contract
For example, a user has:
100k veHND on Ethereum
50k veHND on Arbitrum
The total (150k) can be used for voting/governance
Current gauge contracts do not have the mirroring capability. They can be redeployed to have this feature
Findings From B.Protocol
💡 Hundred Finance is a partner of B.Protocol
The USDC and USDT markets for B.Protocol has been live on Arbitrum with sufficient deposits
Ethereum crashed by ~20% on 4 December 2021
Liquidations were triggered, with the largest liquidation at $326k
USDC depositors earned 4-5% on that date, on top of the HND rewards they have earned
Liquidated ETH was sold over 1 hour with 4 different trades by Gelato keepers
Chains They Are Looking At
Harmony — waiting for Chainlink and is a priority (has been launched since the publishing of this post)
Moonriver — Working with HND launch partners (has been launched since the publishing of this post)
IoTex — Using a Chainlink proxy solution, has a higher risk but the risk is segregated
Optimism — Waiting for Chainlink stablecoin feeds
Ethereum — The team will launch on Ethereum once they are confident with veHND
Polygon/BSC/Avalanche — Still in the planning stage
All information presented above is for educational purposes only and should not be taken as investment advice. Summaries are prepared by The Reading Ape. While reasonable efforts are made to provide accurate content, any errors in interpreting and summarizing the source material are ours alone. We disclaim any liability associated with the use of our content.