HAY, a BNB-Powered Overcollateralized Stablecoin, Is Set to Launch and Disrupt the DeFi ecosystem.
British Virgin Islands – Helio has announced the upcoming launch of HAY, a stablecoin over-collateralized by BNB pegged to USD. Because it is powered by the BNB chain, HAY is poised to become one of the market’s safest and most reliable stablecoins due to its over-collateralization and low gas fees. Furthermore, Helio is introducing an innovative stablecoin liquid staking feature that will provide benefits in addition to traditional staking.
HAY is comparable to MakerDAO’s DAI coin in terms of over-collateralization as a stablecoin. The minimum collateralization ratio for HAY is 66%, which means that users can borrow up to 66% of the value of the BNB collateral they deposit. Furthermore, if the collateralized BNB falls below the 66 % threshold, it is liquidated. This liquidation mechanism ensures that Helio’s reserves always have more BNB than HAY in circulation.
Helio has recently released a testnet application that allows users to experiment with depositing BNB, varying borrowing utilization percentages, and viewing the APR fees and APY yields that result from HAY. All in preparation for the scheduled mainnet launch in a few weeks.
Due to recent events that proved disastrous for algorithmic stablecoin investors, the market for stablecoins appears poised for disruption. This is precisely what HAY intends to accomplish. What distinguishes HAY from algorithmic stablecoins that are not backed by anything is its over-collateralized architecture, which backs its peg to the greatest extent possible.
Helio will also introduce an innovative liquid staking feature unique in the stablecoin market, addressing the capital inefficiencies associated with traditional staking, primarily bonding and unbonding periods. Users who borrow HAY will also receive HAY liquid staking tokens (reward bearing aBNBc tokens or rebasing aBNBb tokens). The native HAY can be staked within the Helio protocol to earn double-digit staking yields. The HAY liquid staking tokens can be used in external DeFi protocols to generate extra yield without lock-up periods.
Helio will issue Helio governance tokens in addition to HAY. Its primary function is to give HAY holders voting rights to help decide the Helio protocol’s future moves. These tokens, like other cryptocurrencies, will be tradable and add extra value to Helio users.
Helio’s team is confident that it is bringing a much-needed product to market that will fill gaps and solidify stablecoins as a sustainable and secure instrument for trading and value storage for the entire cryptocurrency ecosystem.
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