Hei Protocol：unprecedented stablecoin on Heco Chain
1️⃣ The Inspiration for HEI
We forked from FEI, the contract and mechanism of HEI and Fei are exactly the same.Please see the code comparison here on our github: https://github.com/HEImoney. Heco Chain performance is much faster than ETH. Huobi, as a CEX, HEI can enter the centralized exchange, there is a better application scenario for HEI scaling.
2️⃣ HEI Protocol : the Bonding Curve, PCV, Direct Incentive
The most exciting about direct incentive stablecoin is bonding curve, PCV and directive mechanism. Hei Protocol forked from Fei in terms of the core part protocol.
Please refer to our code opensourced @https://github.com/HeiProtocol/
We won’t go any further here, please refer to our white paper https://hei.money
3️⃣ Genesis Group and Initial DeFi Offering
The earliest portion of the bonding curve will offer attractive prices for HEI. To mitigate frontrunning and unequal early distributions, HEI Protocol will also include a “Genesis Period.” The Genesis Period will be a time period of 2–3 days in which early adopters can pool their HT. This group will be known as the Genesis Group. Members of the Genesis Group earn a shared pro-rata percentage of the first bonding curve transaction. This is similar to the Hegic IBCO. Using this approach, access to the earliest HEI on the bonding curve will be open to all with equal opportunity. As an additional reward, the Genesis Group earns 10% of the total Hibe supply pro-rata.
The Genesis Group completion will kick off an Initial DeFi Offering of the Hibe token. The listing will be on pancakeswap, denominated in HEI and Hibe. The HEI for the IDO is minted by the protocol. The circulating HEI and Hibe from the Genesis Group can be used in the IDO for efficient price discovery. The fully diluted valuation of Hibe will be set to the same value as the amount of HT raised in the Genesis Group. The pancakeswap liquidity tokens for this IDO will be stored in a development fund. It will have linear vesting over 4 years to guarantee the liquidity for a sufficient period. The IDO allows for open price discovery and access to Hibe immediately at the close of the Genesis Period.
4️⃣ Hibe and HEI Protocol Governance
HEI Protocol will launch with a fully decentralized DAO on day one. The Hibe token controls the DAO. As a decentralized team, we haven’t got any investors, we will fully empower the community for Hei Protocol Governance. We make some adjustment on HEI Protocol governance.
The main difference areas follows,
❥ 5% of Hibe are distributed to seed pool for fair farming
❥ HEI allocate 15% HEI-Hibe LP staking reward, double that of Fei
❥ We have no allocation for investors offchain. We prefer to find partners via IDO(initial Dex Offering).
✨ Community/Team split is 87/13.
✨Community liquidity is instant.
✨Team has back-weighted time-lock.
✨The majority of the Hibe will be controlled by the DAO.
✨Genesis Group gets early access to the Initial DEX Offering.
5️⃣ The Hibe distribution
The total initial supply of Hibe is 1 billion. The token distribution breaks down as follows, with Team and Investors rounded to the nearest percent:
🎐40% DAO Treasury
🎐15% HEI/Hibe LP Staking Rewards
🎐15% Initial DEX Offering (IDO)
🎐13% HEI Core Team
🎐10% Genesis Group
🎐5% Seed Pool
A critical consideration is that the community of Hibe holders collectively maintains the ability to inflate the Hibe supply. This may be of interest to the community for numerous reasons, including creating enhancements such as a backstopping feature for deflating in black swan scenarios, like the MKR debt auction feature of MakerDAO.
6️⃣ Liquidity Timeline
Time-lock for key Hibe allocations
One of the biggest problems with DeFi projects today is the early access to liquidity. Investors and team members at some of the biggest projects have been getting unfathomably rich way too quickly. In startups, employees and investors are illiquid for many years and build towards a liquidity event.
Early developers and investors have agreed to lock-ups which are intended to incentivize them to continue to support the ecosystem along with new developers. This will also ensure prioritization of the Community having instant liquidity in Hibe
7️⃣ Genesis Group
Before launch, we will share a post that describes how to participate in the Genesis Group and IDO. The Genesis Group will receive 10% of the initial Hibe supply. It is important to note that this allocation is distributed pro-rata (based on HT) to all participants in the Genesis Group. If the total raised is 100,000 HT and you put in 100 HT, you will receive 0.1% of the Genesis Group Hibe. This would be 0.01% of the total initial supply. This Hibe is a bonus in addition to the HEI received from the bonding curve; see more in the IDO section below.
8️⃣ Initial DEX Offering (IDO)
The IDO will be a direct listing of HEI-Hibe on Pancakeswap. It is available immediately at Genesis Period completion. The IDO will receive 10% of the initial Hibe supply. As we discussed in the HEI Protocol Announcement, the HEI for this IDO is minted by the protocol at Genesis Period completion. The liquidity (Pancakeswap LP tokens) for this IDO are time-locked and owned collectively by the HEI Core Team and investors. The timelock follows the same four-year linear vesting as the investor allocation discussed below. This allocation strategy allows for both deep Hibe liquidity at launch and additional incentives for the development team to support the protocol. A win-win.
The listing price of the IDO is determined as follows: take the fully diluted valuation of Hibe at Genesis and set it equal to the amount of HEI purchased on the bonding curve at Genesis. Therefore the 10% of the Hibe in the IDO will be listed with the equivalent amount of HEI as 10% of the HEI purchased by the Genesis Group.
This HEI is minted by the protocol and not taken out of the Genesis Group’s stake. This sets the valuation at approximately a multiple of 1x on the HT Protocol Controlled Value (PCV) raised in the Genesis Group. This price is used as a security floor on attackers HEIng able to 51% attack HEI Protocol to withdraw all of the PCV. As a refresher, PCV refers to the assets that are algorithmically owned and deployed by HEI Protocol to help support the peg.
Hei Protocol allocate 5,000,000 Hibe for Seed Pool farming. Detailed information and ratio will be announced later on our twitter and telegram.
Supported Farming Tokens:
An important concern brought up by the Community is the ability of bots to front-run the IDO at the expense of prospective investors. We are proud to announce a feature enhancement to the Genesis Group functionality to address this concern! Genesis participants can “pre-commit” their HEI from the bonding curve to go straight to the IDO to purchase Hibe at Genesis completion. As long as you are in the Genesis Group at any time, you can be the first purchaser on the IDO before any bots get a chance! The pre-commit feature allows you to commit any percentage of your stake in Genesis.
To illustrate the pre-commit feature, let’s say you personally have 1% of Genesis HT staked and pre-commit half of it. Now the Genesis Group closes with enough HT to purchase 100m HEI on the bonding curve. Without the pre-commitment, you would be entitled to 1m HEI and 1% of the Genesis Hibe. With the pre-commitment, you get 500k HEI and the remaining 500k goes to the IDO to purchase Hibe.
All pre-committed HEI get the same Hibe price and the very first transaction on the IDO.
Pre-swapping is one-way. Users can only increase their pre-swap percentage. Note that any of the Genesis allocation used to pre-swap will still be entitled to the pro-rata portion of the Genesis Group Hibe. Users will not sacrifice the initial Hibe allocation by swapping their HEI.
This is our personal favorite part of the token allocation. 2% of the initial Hibe will be owned by the core team and available for distribution to the Community as grants. These grants might be oriented towards furthering crypto and DeFi innovations, bug bounties for HEI Protocol, or other affairs that helps grow Hei Protocol. We will publish details on our community about the usage of Grants
🔟 Launch details for the decentralized stablecoin platform
⏰ Bonding Curve
Anyone can secure HEI Protocol by committing HT for HEI at https://app.HEI.money
⏰ Genesis Group
HEI and Hibe will be released at the end of Genesis on April 7th, 2021, at 12:01 pm PT
Start exactly when genesis group ends
To be announced
To be announced
🌊 To learn more about HEI Protocol: