Collateral Assets

HAY is generated and backed, through collateral assets that are deposited into Helio Protocol (CeVault). Upon launch, the accepted collateral asset to mint HAY is BNB.

In collateralizing their BNB, users will be investing in the broader Helio ecosystem and can borrow HAY to gain yield from staking it.

In borrowing HAY from the Helio Protocol, users will receive rewards paid out in HELIO — the native governance token. Rewards are calculated dynamically, which are determined based on the rewards rate and total user’s debt in HAY. The rewards rate is determined and is fixed amount set by Helio Protocol initially, this is subject to change upon late stage once DAO governance is introduced

Users can liquidate their holdings if they see a liquidation process is due, as the borrowed HAY value becomes higher than the current worth of user's collateral with safety margin, and receive a flat fee (tip) and a dynamic percentage (chip) simply for starting a Dutch auction, which is the core component of the liquidation process. It is an opportunity arising in the liquidation process, and any Helio user can do it. Besides this opportunity, anybody who restarts the Dutch auction receives the same reward (chip + tip) for doing it.