Liquidity Pools (LPs)

Both HAY and HELIO can be staked or swapped via liquidity pools (LPs) on DEXes. Besides earning trading fees for being a liquidity provider to LPs, the Helio Protocol intends to further incentivize LPs with either HAY or HELIO as farming rewards, the amount of rewards will vary with DEXes and the participation in LPs. Upon launch, users will be able to provide liquidity or swap tokens in LPs on BNB native DEXes.

Liquid staking tokens are automatically issued when users successfully stake assets such as HAY and BNB, becoming hHAY and hBNB respectively. eg:

1. hHAY/BNB pairs can be used to provide liquidity to hHAY/BNB liquidity pools on DEXs. As more people trade, users can earn a share of transaction fees, on top of their HAY staking rewards from hHAY.

2. By providing liquidity, users may receive farming rewards on top of LP tokens, representing their share of the LPs on DEXes.

3. Once users harvest the farmed tokens, they can further stake those tokens to earn more yield, or simply sell them to buy more HAY and HELIO to generate more yield. Repeating this operation periodically will add a compounding effect on their yield

When staking HAY and receiving Liquid Staking tokens (hHAY), the main benefit comes from the liquidity of the hHAY tokens since it is not possible to unstake HAY for the moment.

Helio Protocol will continue to increase HAY adoptions by partnering with DeFi protocols on the BNB Chain and use the native token of various DeFi protocols to influence rewards emission. The team will also actively use HELIO to incentivize HAY liquidity pools across DEXes to maintain its redeemable value of $1 USD.

DeFi composability would enable HAY liquidity providers, and at a later stage, HAY stakers as well, to further boost yield in a sustainable manner thanks to the integration with other lending platforms.

HAY and HELIO holders can combine these strategies while using the Helio Protocol to maximize their returns even further.