Helio Protocol is dedicated to unlocking the full potential of Liquid Staking Tokens (LSTs) by offering users the opportunity to mint our fully and over collateralised decentralised stablecoin, HAY.
Through this innovative system, HAY becomes incentivised across various money markets such as Wombat and Thena Finance, enabling users to earn trading fees and native tokens in addition to staking rewards.
During the past year, Helio Protocol has diligently worked behind the scenes to refine its platform. Now, with the introduction of the new LSTfi summer narrative, we are excited to share our latest developments with our community.
Current state
According to Defillama, the Liquid Staking market boasts an impressive Total Value Locked (TVL) of $20 billion, making it the largest category within DeFi by TVL.
New Collateral Lists
Presently, HAY primarily relies on only one LST token, namely AnkrBNB (Ankr), as collateral. In line with our ongoing commitment to enhancing the security of the Helio Protocol and diversifying our Total Value Locked (TVL), we are delighted to announce the integration of the following LST assets as collateral:
- snBNB (Synclub)
- BNBx (Stader)
- stkBNB (Pstake)
- wBETH (Binance)
This integration of additional liquid staking providers underscores our dedication to expanding options for our users. By offering a broader range of liquid staking tokens, we enhance flexibility and choice within our community, empowering users to optimize their staking strategies and maximize their rewards.
Integration
Moving forward, the aforementioned basket of LSTs (SnBNB, ankrBNB, BNBx, stkBNB) will be incorporated as part of our collateral assets to back the value of $HAY.
This inclusion carries a few implications for Helio Protocol:
1) Collateral Conversion:
When users deposit BNB as collateral, Helio Protocol seamlessly converts it to the basket of LSTs listed above. However, users will only see BNB in their balances, simplifying the user experience.
2) Withdrawal Options:
Upon withdrawal of collateral, users will have two choices:
A) Liquid Staking Token Withdrawals: Users can opt for immediate withdrawal in either SnBNB or other BNB LST tokens based on their respective balances. These withdrawals will be processed instantly.
B) BNB Withdrawals: Users can choose to withdraw their collateral in BNB. However, these withdrawals may take up to 15 days to process. Helio Protocol will select the liquid staking token with the lowest Annual Percentage Rate (APR) at the time of withdrawal, convert it to BNB, and return it to the user within the specified timeframe.
Methodology
In anticipation of this upgrade, the following steps will be undertaken:
Step 1:
- Helio Protocol will momentarily pause protocol operations, including liquidations. We will update the community as this progresses. This is expected to take a few hours.
- This is estimated to happen at: 9.00am UTC time on Tuesday, 11th July.
- During this time, we will be switching our ankrBNB collateral and liquidation assets to BNB in preparation for our multi-LST collateral integration.
- Upon completion of B), protocol functions will resume as per normal. During this transitional period, users are only allowed to withdraw BNB. However, instead of waiting 7–15 days, they can withdraw their BNB instantly. Additionally, liquidation assets will also be BNB instead of ankrBNB
Step 2:
- Once our contracts are prepared for integration with the aforementioned LSTs, the main contract upgrade will take place. We will furnish an estimated timeline for this process as soon as a more definitive schedule becomes available.
- Once the integration has been completed, users can choose to withdraw their BNB instantly through any of the listed LSTs, or wait up to 15 days to withdraw their BNB.
Moving forward
ETH as a collateral
Going forward, users will have the choice to provide collateral in ETH to borrow HAY, maintaining the same minimum Loan-to-Value (LTV) ratio of 66%.
In the background, we will liquid stake the ETH users have provided into different baskets of LSTs such as sfrxETH or wBETH, similar to BNB.
LP tokens as a collateral (coming soon)
We are also in the process of integrating LP tokens such as SnBNB-BNB & ETH-wBETH tokens to be directly offered as a form of collateral to mint HAY.
Users should be aware that by providing LP tokens as collateral, they are vulnerable to impermanent losses. Once the value of the LP tokens descends below the minimum LTV ratio required, they will be subject to liquidation.
A Multi-chain Helio
Last but not least, in the next phase of our roadmap, we aim to bridge the Helio Protocol & HAY over to the Ethereum network, followed by prevalent Layer2 networks such as Arbitrum and Zksync.
Conclusion
Helio Protocol occupies a pivotal role within the LSTfi ecosystem, aiming to unlock the complete potential of Liquid Staking Tokens (LSTs). By minting the decentralized stablecoin HAY, backed by LST collateral, users can earn incentives across diverse money markets, receiving trading fees and native tokens in addition to staking rewards.
The integration of additional LST assets as collateral expands options for users, empowering them to optimize their staking strategies and maximize rewards. With seamless collateral conversion and withdrawal options,
Helio Protocol ensures a simplified user experience while offering flexibility and choice. As Helio continues to evolve, we remain steadfast in enhancing security, diversifying TVL, and providing a robust platform for the LSTfi community.
Keep up with our latest updates here!
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