Hector Network

HIP-001 Next bonds

Summary: Hector can launch either new fUSDT or MIM bonds.

Background: The treasury is the most important part of HEC, without it HEC wouldn’t have much of a use case. That’s why it’s important that the treasury grows in value. Lucky for us, when you buy a bond, you directly fund the treasury. This is very important to the protocol because the more bonds that are bought, the more money flows into the treasury which effectively raises the backing per HEC as well as the APYs offered to Stakers. The backing per HEC is the amount of money each HEC token is backed by. If the price were to drop below the backing per HEC amount, the protocol would automatically buy back and burn enough HEC to raise HEC’s price above the backing per HEC, which ensures a steadily rising price floor. So buying a bond is a win-win for everyone, as the backing per HEC rises along with the treasury size and you get HEC at a discounted price. (more HEC for less money). In the last 2 weeks, we already launched liquidity bonds HEC-USDC and HEC-DAI, as well as USDC, DAI and wFTM bonds.

Motivation: build up bond market with another (more constrained) option. Attract new investors, especially from other chains and projects. Potentially develop partnerships (MIM).

It’s in the hands of the Hector community. fUSDT or MIM? MIM is Abracadabra’s native Magic Internet Money stablecoin, versus Tether (USDT), a cryptocurrency with a value meant to mirror the value of the U.S. dollar.

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