HAY Destablecoin

HAY is an overcollateralized destablecoin backed by liquid staked BNB and is redeemable for $1 USD value of crypto currency. The Helio Protocol is able to ensure HAY is redeemable following the scenarios below:

Scenario 1: When HAY > $1, the supply of HAY will have to be increased.

• Since HAY is at a premium, borrowers are incentivized to borrow more HAY to sell for other assets for arbitrage opportunities.

• To reduce demand for HAY farming, Helio will reduce HAY farming rewards by decreasing HAY borrowing interest.

Scenario 2: When HAY < $1, the supply of HAY will have to be reduced.

• Since HAY is at a discount, borrowers are incentivized to buy HAY from the market to pay back the debt.

• To decrease HAY borrowing demand, Helio will increase HAY borrowing interest, which increases HAY farming rewards

Upon launch, HAY will be issued as a BEP-20 compatible token. Its use cases include the following:

• Borrowing HAY

- Users who have deposit BNB on the Helio Protocol (CeVault) are eligible to borrow HAY

- The operations of borrowing HAY, repaying the loan and withdrawing the original collaterals are all governed by a set of smart contracts.

• Liquidity Mining: Via 3rd party LPs on DEXes.

Payment: As means to transfer value, purchase goods & services.