We have seen new decentralized finance projects launching innovative solutions with fiat currencies and inflation. One to keep an eye on is Hector DAO and its reserve-backed cryptocurrency.
Hector DAO emerged as a fork from Olympus DAO. The platform has a complex system of multiple interconnected smart contracts that aims to build a reserve treasury from platform profits for its native currency, $HEC. This algorithmic reserve currency is backed by MakerDAO’s DAI stablecoin and many other crypto-assets.
Ultimately, Hector DAO aims to become the decentralized reserve currency of the Fantom Opera network.
Hector DAO is only little over 1 month old and already ranks 5th among the native Fantom projects when it comes to TVL. Even though overall market conditions where difficult, $HEC was the best performer over the last 7 days on $FTM.
— Hector Network (@Hector_Network) December 11, 2021
Hector DAO Yield Programs
The protocol offers two main options for users to earn yields. Therefore, staking enables users to deposit $HEC to earn a share of earnings from the liquidity pool. Bonding is where uses lend their tokens LP (liquidity provider) to receive native tokens.
On the other hand, the rebase project has a system of dilution, which can be viewed as a type of controlled inflation. The number of $HEC tokens minted is directly linked to the revenue generated by bond sales.
We just published a medium article discussing in depth the importance of maintaining a healthy APY. Make sure to read this article 🙏➡️ https://t.co/DmJBNaTVJr
— Hector Network (@Hector_Network) December 12, 2021
In a blog post on December 12th, the Hector DAO team explained: “Since each HEC token can only be minted with a real backing, more bond sales mean that more HEC tokens can be minted, which means APYs can be higher.”
Additionally, Annual Percentage Yields (APY) aims to prevent inflation and to be able to mint tokens without collateral backing.
Moreover, in recent news, Hector DAO announced a partnership with Rari Capital on December 13th. The collaboration will enable $HEC in the native Olympus token, $OHM.
Finally, the Hector DAO dashboard is reporting a total value locked of $139 million at the time of writing. Additionally, with a circulating supply of 1.35 million tokens with a marketcap of $159.4 million.
Source: Hector DAO Dashboard
$HEC Price Outlook
When writing this article, the price of $HEC is currently trading at $117.22 after dropping 10.1% in the last 24 hours. Also, it’s important to say that $HEC hit an all-time high of $357 on November 21st.
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The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This article has been sponsored by Hector Network. Copyright Altcoin Buzz Pte Ltd.