In the bear market, the crypto market has shrunk massively, and liquidity and users have been lost in large numbers. The DeFi track has been particularly affected, because in the last bull market, the explosion of DeFi created too many bubbles and leverages, which in the bear market all became the triggers for the explosions and were detonated one by one. The DeFi track has been hit hard, and most DeFi protocols have stopped updating and maintained the status quo, waiting for the market to recover. Of course, we still believe that the potential of DeFi has not been fully tapped, and its explosive power is still very strong, and it is a track worth looking forward to.

Continue to build

Although the market is sluggish, there are still some builders who have never stopped their pace. They continue to innovate, build communities, and expand applications, contributing an important part to the development of blockchain. Helio Protocol is a decentralized stablecoin protocol built on BNB Chain, which uses over-collateralization and liquidation mechanisms to ensure the security of the protocol. Helio Protocol continues to expand the boundaries of the protocol and deeply integrates its products into the DeFi ecosystem of BNB Chain, bringing HAY's capital efficiency to a new level.

HAY is a decentralized stablecoin issued by Helio Protocol through over-collateralization. At the same time, a liquidation mechanism is used to ensure that the liquidity stored in the protocol can fully cover the balance sheet. Users pledge BNB and BUSD in Helio Protocol to borrow HAY, which can be used in a variety of scenarios such as trading, staking, liquidity mining, and value transfer. At present, HAY is already the most circulated decentralized stablecoin on the BNB Chain.

Starting from April 22, Helio Protocol will reduce the lending rate of HAY to 0. Users who deposit BNB and BUSD will be able to borrow HAY at zero interest. This will help increase the use of HAY and provide more liquidity to the market, while reducing the cost of using HAY and improving HAY's capital efficiency.

In order to further reward users of the Hellio Protocol, the official also launched a limited NFT minting event on Galxe, and participants have the hope of sharing 10,000 HAY rewards. The event will end on May 19, and the NFT is limited to 2,000. Other benefits may be available in the future. The activity requirements are also very simple. In addition to following and retweeting, you must become a HAY borrower. The current HAY borrowing interest rate is 0, and you can participate with just the gas cost.

Activity participation link: https://helio.money/app/provide/?token=BUSD

Expanding boundaries

In addition to the above activities, Helio Protocol has also strengthened its cooperation with Wombat Exchange. It will gradually shut down the staking function in the protocol, put more HAY liquidity into the ecosystem, and establish two stablecoin pools in Wombat Exchange.

Smart Hay Pool includes three stablecoins: HAY, USDT, and USDC. Helio has added 3 million HAY to the pool for initial liquidity. The establishment of Smart Hay Pool provides on-chain users with a scenario with better depth, lower slippage, and more convenient transactions, and also provides on-chain funds with an opportunity to make high profits.

Six stablecoins are included in the Stable Guild Pool, namely CUSD from Coin98, HAY from Helio Protocol, FRAX from FRAX Finance, USD+ and USDT+ ​​from OvernightFi, and USDC. This pool is expected to become the largest stablecoin pool on all chains, providing BNB Chain users with efficient multiple exchange options and minimizing slippage. Each project will also provide bribes to Wombat Exchange to increase the APR of liquidity providers, encourage more funds to enter the Stable Guild Pool, and increase the depth of popularity.

Improve capital efficiency

With the composability of Wombat Exchange, the income strategy protocol based on Wombat Exchange can increase the income of Smart Hay Pool and Stable Guild Pool several times, and also increase the capital efficiency of HAY several times. Magpie is the native income enhancement platform of BNB Chain incubated by Wombat Exchange. Through Magpie, stablecoins are deposited into two pools. As shown in the figure below, the income of stablecoins has been significantly improved.

Wombex is an LP yield enhancement and aggregated governance power protocol. Wombex uses accumulated (protocol owned) veWOM to enhance the yield of all funds provided to the protocol and distributes WOM rewards among all LPs. Liquidity providers who deposit liquidity through Wombex receive higher yields than if they provided liquidity directly to Wombat. Additional yield comes from WOM rewards awarded pro rata for each WOM mined by Wombex LPs using Wombex veWOM holdings and WMX.

Providing liquidity from Wombex to Wombat, the highest HAY yield in Smart HAY Pool reached 89.07%. The yields of both pools increased significantly. USDT yielded 56.47% and FRAX yielded 315.4%.

Summarize

Helio Protocol promotes the circulation and use of HAY by reducing the borrowing rate of HAY to 0 and releasing the HAY liquidity within the protocol into the ecosystem. Two stablecoin pools are established on Wombat Exchange to deepen the integration between HAY and other stablecoins in the ecosystem, allowing users on the chain to freely exchange between various stablecoins more efficiently and conveniently without worrying about liquidity and slippage issues. At the same time, by utilizing the composability and capital efficiency of Wombat Exchange, the liquidity mining income of HAY is greatly improved, bringing more profits to HAY holders. It is reported that Helio will launch more initiatives to promote the application scenarios of HAY in the BNB Chain ecosystem, which is worth looking forward to in the future.

Finally, it is important to remind you that any investment behavior is accompanied by risks. This article is not intended as investment advice. Please DYOR and fully understand the risks before participating.