AMA Questions for the week of Feb 21st— Feb 25th 2022
Nothing in this article or any other should be considered as advice or a guarantee. Always consult with an expert and make responsible decisions.
Note: answers are accurate at the time of answering and questions are posted “as is”, so they may contain inaccuracies.
Happy Friday again Hectorians!
Yesterday we held our weekly community update session on youtube.
Here’s a writeup of all the most frequent community questions:
Do you see Hector finance lowering the apy for hec? or are we still going to keep the current rate?
We lowered the APY for HEC as a result of HIP-017. The proposal states that APY will be flexible between 200% and 1500%. It is likely that APY will stay on the lower end of that scale for some time whilst we establish the Hector Ecosystem.
With US inflation of 7.0%, which has affected the markets to some extent. And that’s on top of the situation we woke up to today….
How it will affect HECTOR FINANCE???
There is no doubt that the markets and economies (both locally and globally, both in crypto and outside of it) are going to be placed under pressure as a result of current events (BTC bear market approaching, Covid-19 economic damage, Current situation in Eastern Europe, maybe climate change at some point). Hector Finance has a treasury worth around $100,000,000. We have a dedicated team and community and we will endeavour to get through whatever the markets throw at us. The path ahead will obviously be tough, but we are not going to quit.
Will all this progress affect the hector price?
We don’t make price predictions, but we are building a valuable ecosystem of utility. This takes time even in the best of conditions (something which we are currently not in!).We focus on building utility for HEC.
Where do baby validators come from?
A stork brings them.
Any updates on Strongblock partnership?
We communicated with them regarding a dox a few weeks ago and have had no response. The ball is in their court if they wish to continue pursuing the partnership.
Is there active development work happening with the bank?
Yes. We are working on bringing several new tokens to Hector Bank, including TOR and some other major tokens in the Fantom space. We are also regularly analysing how Hector Bank can best be positioned to serve the ecosystem as well as maintaining the safety of users.
Is there any benefit to have NFT?
Assuming this is regardnig the upcoming NFT collection we’ve teased in recent weeks — yes. There will be many benefits.
Any collab with beefy, protofi,yearn,balancer to have Tor in a LP pair or stablecoin pair?
We’re actively exploring every placement for TOR ;)
I know the crypto market is down heavily but with HEC becoming deflationary do you see the value of HEC increasing to reduce my break even wait time? I am so impressed how Hector Finance is creating their ECOSYSTEM and continue to have belief that this will give utility to the HEC token.
We don’t give price predictions, but we will say that we’re developing a robust ecosystem that has real utility and will be supportive of the HEC token in multiple ways.
Playing devil’s advocate, has the team addressed at all what would happen if TOR farm was to get hacked? I have a hard wallet, which wont protect me if the LP is attacked. I want to throw some good money into TOR farm but am hesitant because of what happened to Grim. Will we be reimbursed our initial TOR investments and earn rewards IF this were to ever happen?
Grim Finance’s custom contracts were audited by Solidity Finance, who later admited fault, stating that they had missed the vulnerability in their review process.
No system is ‘unhackable’ and the threat landscape is constantly changing. The entire TOR ecosystem of contracts are audited by CertiK, and are regularly also reviewed internally. Regarding the LP — it sits on Curve, and so any attacker who could exploit Curve may be targeting much larger pools than ours. But that does not mean we assume security through obscurity. We suspect that in the wake of the attack on Grim Finance, competent security-adjecent people in the space will have analysed the attack and learned from it, auditors included. Users of our offerings should ALWAYS be aware that nothing is 100% safe, but we work hard to get as close to 100% as possible.
Prometheus mentioned at some point that the long time holders will be rewarded in a way. Do we have any news, updates on this?
We said that we would be exploring the possibilities. There are no updates on this as of today.
Is there a current target supply defined for HEC supply? At what point would it not be desired to burn more HEC? If market conditions remain the same for a year, and we keep burning 220k net HEC per month, we would end up with a supply of a bit more than 1mil in 12 months. Is there any thought on how to control supply to keep in the desired range (whichever range it is).
We have a general range targeted, but more important than reaching a specified number is simply to be deflationary. The markets are in a strange place at the moment, and so it is our focus to establish the processes etc that lead to success, rather than naming numbers we want to reach. As markets retrun to a more ‘normal’ sentiment and risk profile, we’ll get a better idea of market reactions to HEC’s decreasing supply, but essentially right now we’re just making sure we can maintain deflation sustainably regardless of markets because this aids in the production of more utility.
We are working on plans which would effectively define an upper bound and ensure deflation in all cases, but we’re in the early stages right now. More info will come on that in the coming weeks.
What are the plans to increase the incentive to buy and hold HEC with the current and future 2022 roadmap utility? For example, Hector Bank is benefitial for HEC, but there is no direct incentive for buying or holding HEC when interacting with the bank. It could get easily introduced by adding certain benefits based on your HEC bag / stake duration. Similar to how WOO reduces the trading fees based on how much you stake.
The utility for HEC will involve things similar to WOO, wherein holding/burning HEC will have benefits which can reach across the whole ecosystem. These features are being built currently and sit as part of the foundations being laid out for our upcoming subprojects.
Why does the treasury not stake BOO for xBOO? and stake xBOO into the Hec pool?
It will be soon! We’re deploying a range of treasury upgrades, both in how the treasury is used as well as how we display treasury data.
Thanks for all of the questions, I hope you all have a nice weekend.
❤ from Proms