AMA

Helio Protocol AMA Transcript

" A protocol that enables the generation of the $HAY stablecoin through BNB over-collateralization "

Stephanie (BSC.News)

Hello everyone and welcome to the AMA with Helio Protocol! Today we have @Helio_Hayman joining us to talk about their exciting new project. Great to have you here :)

Helius

Hey @stephanie992! Thank you for having me here speaking about Helio Protocol!

Stephanie (BSC.News)

Pleasure to have you here today @Helio_Hayman. Alright! Without further due, we will jump right into the questions. Sounds good with you?

Helius

Yes, let’s do it 🔥

Stephanie (BSC.News)

Awesome!

1. Please introduce yourself and the team behind Helio Protocol.

Helius

I am Helius, the Co-Founder of Helio Protocol. My background is mostly in traditional finance but around 4 years ago, I started learning about DeFi and made the switch to DeFi full-time and now I am founding this over-collateralized stablecoin protocol called Helio.

We are around 10-15 people working on Helio Protocol at the moment

Stephanie (BSC.News)

Okay nice. Thank you for that intro!

2. What is Helio Protocol and what’s the vision and mission of your team?

Helius

Great question!

The Helio.Money protocol, powered by the BNB chain, introduces an innovative architecture to stablecoin minting. Helio's stablecoin is called $HAY, and it is over-collateralized with BNB tokens. To obtain $HAY, the user will need to provide BNB collateral and borrow $HAY against it. After that, $HAY can be staked for long-term yield and transferred to other protocols to generate additional yield. HAY is over-collateralized, making its peg highly secure and comparable to the MakerDAO DAI token.

Our mission is to enable anyone to earn a consistent return on its stablecoin, $HAY. Our main goal is to become the most used decentralized stablecoin protocol and trusted reference rate enabler for the stablecoin market, leveraging Proof-of-Stake (PoS) rewards from liquid-staking assets

Stephanie (BSC.News)

Okay wow thank you for all that information! Let's unpack a bit as there was a lot I wanted to touch on. So first let's talk about your token.

Helius

Sure thing

3. Can you tell us more about $HELIO and $HAY token?

a. Utilities

b. Tokenomics

Helius

Of course

Let me dive into the utilities first

$HAY is our native over-collateralized stablecoin backed by BNB assets while $HELIO is the governance token of our protocol, governing Helio Revenue Pool distribution and $HELIO token incentives.

After providing BNB as collateral you will be able to borrow $HAY which is Helio Protocol’s stablecoin. When you mint $HAY, you also earn $HELIO tokens that offset $HAY’s borrowing fees.

We also plan to introduce other utilities for the $HELIO token which includes a democratic governance by token holders and much more — more announcements to come regarding this in the future!

In order to learn about $HAY’s and $HELIO’s tokenomics, head over to the link below 👇

I will also break down $HAY’s price mechanism

As I believe this is a crucial part of Helio Protocol

The Helio protocol uses a rebase mechanism to keep the market price of 1 $HAY equal to 1 US Dollar

For HAY’s market price to perfectly reflect the US Dollar, $HAY rebalances:

If $HAY goes under $1, the supply of $HAY is reduced:

Since HAY is at a discount, borrowers are incentivized to buy HAY from the market to pay back the debt.

To decrease $HAY borrowing demand, Helio increases $HAY borrowing interest, which increases $HAY farming rewards.

If $HAY exceeds $1, the supply of $HAY is increased:

Since $HAY is at a premium, borrowers are incentivized to borrow more $HAY to sell for other assets.

To reduce demand for $HAY farming, Helio reduces $HAY farming rewards by decreasing $HAY borrowing interest.

Stephanie (BSC.News)

Okay neat! Moving on

4. Please tell us about the benefits and advantages of using Helio Protocol

Helius

Helio's main benefits include taking advantage of liquid staking and providing around 4% borrow interest APR while also providing users w/ around 13% yearly APY for yield farming on the liquidity pool.

Apart from the above Helio Protocol uses and expands the proven MakerDAO model for a decentralized, unbiased, collateral-backed stablecoin and liquid staking.

Here are some other benefits of using Helio Protocol:

-You can use your BNB as collateral to borrow $HAY

-You'll be able to claim $HELIO tokens rewards and participate in governance with $HELIO token.

Stephanie (BSC.News)

Brilliant, thank you! Lots to look forward to

5. What makes $HAY sustainable?

Helius

One of my favorite questions 🙂

Amongst the various stablecoin models, it has been proven that over-collateralized stablecoins are the most sustainable. MakerDAO's DAI stablecoin is the perfect example, and $HAY's architecture is similar.

The main difference is that Helio is an enhanced version aiming to solve the capital efficiency of MakerDAO by allowing the collateral to generate rewards earned by the Helio protocol through BNB Liquid Staking. Helio token holders will then decide how the protocol’s revenue (borrowing interest + rewards from collateral) will be redistributed to $HAY liquidity providers and stakers. This effectively enables $HAY to enable yield in a sustainable way since the collateral is mechanically larger than the staked $HAY coming from borrowing due to the over-collateralization nature of the Helio protocol.

😉😉

Stephanie (BSC.News)

Sounds good!

6. Please introduce the loan liquidation mechanism

Helius

Loan liquidation is activated upon going beneath our collateral ratio taking in consideration the market price of the BNB you used as collateral

As soon as it goes beneath this collateral ratio the liquidation is automatically activated to protect lenders funds

Stephanie (BSC.News)

Great! So to touch more on the riskiness of crypto

7. How do I know Helio Protocol isn’t another UST situation?

Helius

Very important question after the recent events involving UST

UST is a non-asset-backed algorithmic stablecoin. To keep its peg, it employs a sophisticated arbitrage mechanism. Under certain market conditions, the lack of asset backing puts algorithmic stablecoins at risk of de-pegging.

HAY, on the other hand, is a stablecoin that is over-collateralized and backed by BNB reserves. That is, regardless of market conditions, there will always be enough BNB reserves to keep $HAY pegged in perpetuity.

Stephanie (BSC.News)

Very cool! I agree that this is a very important piece of information

8. Is your platform audited or has another safeguard layer in security? How can you ensure users that your platform is safe to use?

Helius

Security is our top priority that’s why we have been audited by the leading blockchain auditing companies: Certik, Veridise, Packshield and Slowmist. You can find them here:

Stephanie (BSC.News)

Thank you for sharing the link!

9. Where are you on your roadmap? What kind of features users can look forward to?

Helius

Right now we are on Phase 1 of our roadmap, we are slowly conquering the BNB chain and it’s community. In the future you can expect more about governance and expansion

For updates on when we are advancing on our roadmap, stay tuned to our social media:

10. Last but not least, any exciting news you would like to announce here today?

Helius

Our testnet is live, if you haven’t checked it out and joined do so now:

We are also hosting our first game night tomorrow on our Discord server

Top 3 highest scorers will be splitting a $100 prize between them 👀👀

Stay tuned for the announcement on our Twitter later today

Stephanie (BSC.News)

How Exciting! Would you be able to provide us with social media links so that our community could follow?

Helius

Sure! You can find all of our links here:

Stephanie (BSC.News)

Great! Make sure that you guys go and check out Helio Protocol, community! Their platform offers you exposure to the best projects on BSC all while rewarding you for using their innovative ecosystem!

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