Spookyswap AMA with Hundred Finance
Primer: Acidbird is part of the core team at Hundred Finance. In this AMA with Spookyswap, he shares how he got to know vfat and how he ended up joining the team. He takes listeners through Hundred Finance, a decentralized lending protocol that is aspiring to launch on 100 chains, going through its features and addressing questions from the Spookyswap community.
Background
In 2009, he was in one country and had to transfer money to another country. Came across Bitcoin
Created a wallet but did not do anything in crypto till 2017
Had an executive role in an IT company. A designer in his company was always telling him about crypto
Entered crypto and invested in many tokens in 2017
Got involved in many projects and communities
During DeFi summer, he was part of the degen trading channel on Synthetix Discord/community. Got to know vfat and TerraBellus
vfat invited him to Hundred Finance, the predecessor of Percent Finance
Percent Finance was not successful and had to be shut down. At that point, work was being done on Hundred Finance and he joined the team
He is also doing operations in several crypto funds
What Is Hundred Finance?
A decentralized lending protocol
They are a fork of Compound
Their mission is to launch on smaller chains in a productive manner
Their focus is on stablecoins
They only incentivize stablecoin supply. Borrowing is not incentivized
It is very cheap to borrow stablecoins from Hundred Finance
Users will be able to supply assets on one chain and borrow on another chain
Why Is It Cheap To Borrow On Hundred?
Their fees are very low
They have a lot of liquidity in stablecoins as people are staying to farm HND
How Are They Different From Compound?
They focus on smaller chains
They attract stablecoin liquidity by incentivizing supply of stablecoins
They are the only protocol to disallow recursive borrowing/lending
💡 Example of recursive borrowing/lending: Supplying Asset A —> Borrow Asset B —> Sell Asset B for Asset A —> Supply Asset A again —> Repeat the process
Integrated with Chainlink. Only offers Chainlink-supported markets on their platform
Is one of the first lending platforms to use Curve’s vote-escrow (VE) model where users can boost their rewards by locking up HND tokens
Their mission is to distribute the HND token as widely as possible before they introduce multi-chain governance
By rewarding users with HND by supplying stablecoins, they managed to distribute the token to as many people as possible across different chains
Differences Between HND and veHND Tokens
HND is their basic primary token. It’s tradable and available across chains
veHND is a vote-escrow token, meaning that it’s non-transferable and locked on one of the chains that the user is on
It does not matter which chain the user has locked their veHND on. They will be able to boost their rewards on whichever chain they are situated on
Where Can Users Get veHND?
There’s a vote page where people can lock their HND for veHND tokens
The vote page also allows users to vote on gauges to boost the rewards they receive
Users can select the lock-up duration for their HND, with a maximum duration of 4 years
1 HND locked up for 4 years is equivalent to 1 veHND
There’s a calculator on their website to calculate how much HND a user needs to boost their rewards
hTokens
They follow the Compound model
When users supply assets on Hundred Finance, they get a hToken which represents the underlying asset and accrues yield from borrowers
How Do They Manage Liquidations?
Anyone can be a liquidator
They have partnered with B.Protocol on Fantom to manage liquidations
💡 B.Protocol aims to make lending platforms more capital efficient and stable by incentivizing simple users and professional traders to act as keepers (liquidators of under-collateralized loans).
B.Protocol would manage liquidations for them when the conditions are met, with B.Protocol users earning additional yield when liquidations occur
Users can earn up to 5% per successful liquidation on B.Protocol
How Can Users Use Hundred Finance To Long And Short A Token?
Their docs have a comprehensive guide on how to long and short a token using Hundred Finance
Example:
Supply some FTM on Hundred Finance
Borrow USDC against the FTM
The USDC could be used to buy more FTM or be deposited on the platform to earn a yield
If FTM goes up, the USDC position is maintained. If FTM drops, the user will get liquidated
“I'm in love with our docs really. I read a lot of docs and visit a lot of docs from different protocols, but I think TerraBellus is doing a very good job with them. And we will keep it up.”
- Acidbird
Why Would Someone Want To Buy HND Tokens And Participate In Their Protocol?
They have received a grant from the Fantom Foundation
They have distributed part of the grant to HND holders across all chains on two separate occasions
There was a vetoken initiative where 0.6% of the total token supply will go to veHND token holders
When Solidly launches, they will be creating an FTM-HND pool on the protocol
Will be continuously incentivizing HND holders to hold on to HND and receive benefits for doing so
Any future grants will benefit HND holders as well
mveHND Tokens
veHND tokens cannot be transferred from one chain to another
They will be introducing mirror veHND (mveHND) tokens to mirror user’s veHND tokens from one chain to every other chains
They will be the first protocol to do this
This will enable multi-chain governance
Need to relaunch and re-deploy all the gauges to implement this feature
Which Chains Are They On Right Now?
On Arbitrum, Fantom, Harmony, and Moonriver
Will be launching on Gnosis (formerly xDai) and Optimism
How Will veHND Be Used For Governance?
veHND will be used to govern everything — treasury emissions, fees, development
Will transition to a DAO sometime later this year
veHND holders who voted on governance decisions will share 0.4% of the veHND token emissions. Those who did not vote will only receive 0.2% of the emissions
Recently, the community voted to integrate with Liquid Driver
Token Distribution
No VCs were involved at all
Has a total supply of 100 million HND tokens
20% of the total supply was granted to Compound DAO because they are grateful to Compound for their code. Tokens will be vested over 4 years
20% of the total supply are allocated to Percent token holders, the predecessors of Hundred Finance. They will be able to swap from Percent token to HND token on a 1-to-1 basis. They will get 10% upfront and 90% vested over 1 year
40% of the total supply will be used for liquidity incentives and partnerships. They have a 4-year plan for these tokens
The remaining 20% is allocated to the development team
Their Roadmap
Multi-chain expansion
Further HND distribution and veHND integration
User acquisition
What they are planning to achieve this year:
Fully launch community governance
Launch on at least 10-12 more chains
Introduce multi-chain lending
Their Team
Consists of 6 people
vfat — Founder and lead developer
Acidbird — Marketing, PR, operations, and community
TerraBellus — Partnerships, content, and docs
Bluecrypt — mathematician behind all their formulas
0xSHA2 — Senior dev
Nipa — UI
Will have 2 more individuals joining them
Questions From The Spookyswap Community
How Does Someone Get In Contact With Hundred Finance About Partnerships?
Join their Discord and DM Acidbird
Why Would Someone Move Their FTM To Hundred Finance?
They could use their FTM as collateral to borrow USDC at a cheap interest rate
What Have They Done To Make Hundred Finance Secure?
Did not do any significant changes to the Compound code
The Compound code is battle-tested
They only use Chainlink Oracle price feeds
They are very picky with bridges
Will have a call with Trail of Bits next week
What Bridges Do They Mainly Focus On?
Multichain (previously Anyswap)
3-4 bridges have approached them with partnership but they have refused
Security is very important to them
Are There Any Upcoming Partnerships Or Integrations For Hundred Finance?
Waiting for the integration with Liquid Driver
Do They Have Any Plans To Join Forces With Solidex Or 0xDAO?
Have discussed with their community. Hundred Finance will be going solo for now
What Else Would They Like To Share WIth Listeners?
Will be releasing POAPs to the community
Have prepared and distributed 5 different POAPs to date
Has given one of the POAPs out to users who contributed liquidity during Solidly snapshot
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.