Introduction
Due to the high volatility of crypto markets, cryptocurrencies face challenges as mediums of exchange and units of account. Stablecoins address this issue by pegging their value to fiat currencies, offering low volatility and serving as efficient trading pairs.
Types of Stablecoins
- Centralized Stablecoins (e.g., USDT, USDC): Backed by off-chain assets and issued by centralized entities.
- Decentralized Stablecoins (e.g., DAI, HAY): Generated via over-collateralization or algorithmic mechanisms on-chain.
Destablecoin — HAY
HAY is Helio Protocol’s over-collateralized destablecoin on BNB Chain, designed to maintain price stability through:
- 66% Loan-to-Value (LTV) ratio (lower than most protocols for added safety).
- Liquidation mechanisms to ensure solvency during market downturns.
- Decentralized collateral (BNB), enhancing trustlessness and censorship resistance.
Key Features:
- Initial minting cap set at 5% of BNB’s total market cap to prevent depegging.
- Classified as a Destablecoin ("De" = decentralized), allowing minor price fluctuations while retaining stability.
How to Acquire HAY
- Collateralized Borrowing: Stake BNB to borrow HAY (up to 66% of collateral value).
- Yield Farming: Stake CAKE on PancakeSwap for HAY-denominated rewards (current APY: 22.09%).
Use Cases for HAY
- Staking: Earn ~7% APY on Helio Protocol.
- Stable LPs: Pair HAY with BUSD on platforms like PancakeSwap to minimize impermanent loss.
- Payments: Accepted by Okse Wallet & Card for transactions.
BNB Liquid Staking
Users can:
- Deposit BNB into Helio Protocol to receive aBNBc (auto-compounding yield token).
- Borrow HAY to create stable LPs for passive income during bear markets.
Security Measures:
- BNB staked via Binance Liquid Staking for network decentralization.
- Smart contracts audited by Certik, PeckShield, SlowMist, and Veridise.
- 34% safety buffer to mitigate liquidation risks.
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Risk Management
- Liquidation Alerts System (LAS): Notifies users before LTV thresholds are breached.
- Emergency Shutdown: Activated during attacks to safeguard assets.
Conclusion
Helio Protocol unlocks liquidity from staked BNB while maintaining stability via HAY. Its decentralized, audited, and risk-averse design makes it a cornerstone for Web3 infrastructure.
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FAQs
Q1: What collateral backs HAY?
A: BNB, with a 66% LTV ratio to ensure over-collateralization.
Q2: How does Helio prevent liquidation?
A: A 34% buffer and LAS alerts give users time to adjust positions.
Q3: Is HAY truly decentralized?
A: Yes, it uses on-chain BNB as collateral, avoiding centralized control.
Q4: Can HAY lose its peg?
A: The 5% minting cap and liquidation mechanisms minimize depegging risks.
Q5: Where can I spend HAY?
A: Okse Wallet & Card currently supports HAY payments.