BNB Chain has a rich ecosystem, and various innovative projects are constantly launched on BNB Chain. This mainly relies on the strong infrastructure and the various composability provided by the strong on-chain ecology. In the bull market, the peak locked-in volume of BNB Chain in the DeFi field alone reached 20 billion US dollars.
According to data provided by DeFilama, even in a bear market, BNB Chain DeFi's total locked value is still among the top three, with 1.32 million active addresses in 24 hours and 596 DeFi protocols on the chain, second only to Ethereum's 781.
After BUSD announced that it would no longer issue more, the stablecoin landscape on BNB Chain has changed a lot. Although centralized stablecoins still occupy the majority of the market share, decentralized stablecoins are also beginning to be paid more attention to and used by more people because they have better composability and scalability. HAY is the native decentralized stablecoin with the largest circulation volume on BNB Chain, issued by #Helio Protocol.
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HAY's issuance and price stabilization mechanism
HAY is a Destablecoin supported by overcollateralization and liquidation mechanisms issued by Helio Protocol on BNB Chain. Currently, HAY can be borrowed by pledging BNB and BUSD. In order to always maintain sufficient repayment capacity and be able to cope with liquidation risks caused by market changes, Helio Protocol sets the LTV of BNB to 66% and BUSD to 90%, leaving enough buffer space to cope with the risks caused by market fluctuations. In April, Helio Protocol officially announced that the borrowing rate of HAY will be reduced to 0. In other words, users only need to provide enough collateral to borrow for free and use HAY to participate in various DeFi protocols on BNB Chain, thereby earning more income.
HAY uses market corrections and protocol interest rate adjustments to maintain value stability. When the market circulation price of HAY is higher than $1, the circulation of HAY needs to be increased. Users can borrow HAY by staking BNB or BUSD and trade other crypto assets for arbitrage. The protocol will encourage more HAY to enter circulation by reducing HAY farming income; when the price of HAY is lower than $1, borrowers can buy HAY from the market at a discount and repay the loan, and the protocol can reduce the circulation of HAY by increasing the lending rate and increasing HAY farming income. Through market corrections and interest rate regulation, HAY can always maintain a 1:1 peg to the US dollar, and even if there is a short-term small deviation, it can quickly return to the normal range.
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Continue to strengthen ecological collaboration
Decentralized stablecoins need to have diversified application scenarios and sufficient support from other protocols to bring better user experience to holders. Currently, the mainstream DeFi protocols of BNB Chain already support HAY's liquidity mining and use. Users can obtain sustainable returns by staking in DeFi protocols such as Pancakeswap, Wombat Exchange, Uniswap, Ellipsis, Magpie, THENA, etc.
In May, Helio Protocol officially launched its cooperation with USDFi. After USDFi is officially launched, users will be able to borrow, lend and trade HAY on USDFi. It also strengthened its cooperation with Wombat Exchange and formed a strategic alliance with other stablecoins such as FRAX, CUSD, USDT, etc. to jointly promote the collaboration between stablecoins and provide holders with a more convenient and efficient user experience.
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Eliminate Staking and Integrate More Liquidity into the Ecosystem
On May 11, Helio Protocol announced in its official Twitter account that it will gradually phase out HAY's staking function and transfer liquidity to Wombat Exchange's liquidity pool. This move will further release HAY liquidity locked in Helio Protocol, allowing the DeFi ecosystem of HAY and BNB Chain to be deeply integrated. At the same time, it will enrich users' liquidity pairing options, improve staking experience and returns, and provide users with lower transaction slippage and trading options.
Helio Protocol has opened two new stablecoin pools on Wombat Exchange and injected the first batch of 3.5 million HAY liquidity into these two pools. More liquidity will be gradually injected in the future until all liquidity in the staking pool is withdrawn and the staking function is closed. Users' funds in HAY Staking will always remain safe. It is best to transfer funds to the two new pools opened by Wombat Exchange as soon as possible to enjoy more liquidity and higher APR. The two pools are:
Stable Guild Pool
The Stable Guild Pool aims to become the largest DeFi stablecoin pool on all chains. It includes multiple stablecoin projects of BNB Chain:
Helio Protocol’s HAY (Helio injects $500,000 in liquidity)
Frax Finance 的 FRAX
CUSD from Coin98
OvernightFi’s USD+ and USDT+
And USDC
Wombat Exchange will host some interesting Galxe events to help users understand and use the Stable Guild Pool. Each project will provide funds to Wombat Exchange to ensure the highest APR for users. Through joint incentives, it will deepen the collaboration and exchange between Helio and other stablecoins, attract more attention from the BNB Chain DeFi community, and increase HAY's influence and usage efficiency on BNB Chain.
It should be noted that the Stable Guild Pool has greater risks and volatility than the mainstream pool, and the relative returns will be higher, or there will be losses. Before using it, you must understand all the risks and make sure that the risks you face are within your tolerance range.
Smart HAY Pool
Smart HAY Pool includes three stablecoins: HAY, USDT, and USDC. Helio has already migrated $3 million of HAY into it for initial liquidity.
The establishment of Smart HAY Pool has established a low slippage and high capital efficiency liquidity pool between HAY and USDT and USDC. It allows users to more conveniently exchange between the three stablecoins on BNB Chain without loss. With the capital efficiency of Wombat Exchange, the circulation and use of HAY on BNB Chain will be faster and more efficient.
Helio Procotol has been active recently, launching various activities and cooperation between protocols, deeply integrating HAY into the DeFi protocol of BNB Chain. As the delisting date of BUSD approaches, the lending volume and usage frequency of HAY will increase significantly, becoming an important infrastructure of the BNB Chain DeFi ecosystem.
Helio Protocol's Galxe event is still ongoing. Participants can mint limited edition NFTs and share 10,000 HAY. NFT holders may receive more benefits in the future.
Event Details:
https://galxe.com/helio/campaign/GCgv6UYqQQ
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