HORDE EVOLUTION: The Final Frontier.

When HORDE launched on March 22nd it was unlike anything in the DeFi space. Offering rewards for a finite period of time with a set price range on a token was nothing short of revolutionary just 7 months ago. The protocol grew in scope and size, creating over $1,000,000 in revenues (trading bot profits, LMS fees, NFTs, etc.), over $33,000,000 in rewards produced, and over $18,000,000 in HORDE reward tokens were sold for BUSD. The project was designed to keep a steady price and it has.

HORDE also launched at the beginning of the Bear Market we find ourselves in now. When HORDE launched in March, Bitcoin prices were triple what they are today and this was before the crises of UST/Anchor, Celcius, Voyager, and Hodlnaut to name a few. HORDE was able to weather these storms and keep the token price consistent and rewards at 1% per day for over 200 days.

The goal of the HORDE team has always been to build revenue sources that will support and sustain the protocol.

After 7 months of stability amid market turmoil and a worldwide economic downturn, the HORDE team is expediting plans to develop more income streams and convert the project into a profit-sharing model in place of a high APY% DaaS project. This model is fully self-sustainable and not dependent on outside investment. This move towards a revenue-sharing model was the result of a 7-day poll of HORDE Plot owners in which an overwhelming majority chose this option as the path forward (79% of votes were for this option). The team will continue with the things on the roadmap such as zNFTS, a DEX and launchpad, and the HORDE Wasteland Defense mobile game. All income from the DEX, Wasteland Defense Game, and LMS projects will be distributed to holders going forward.

The long-term vision of HORDE is to create an interwoven, dynamic eco-system that rewards those that have been a part of HORDE from the beginning to now and anyone that joins along the way. With tie-ins throughout all the parts of the ecosystem: zNFTS, Wasteland Defense, the upcoming DEX, and the HORDE Vaults, the possibilities are endless. The team has the vision and drive to make something amazing that is self-sustainable and designed to create reliable passive income for those involved.

What does the near future look like for a person in the HORDE ecosystem? What happens with Plots, Runes, Stones, and Scene NFTs?

The outcome of the vote is that the remaining liquidity consisting of the LM funds, the BUSD portion of the LP, and the treasury funds that were able to be liquidated will be pooled. With the market dumping liquidating the treasury and the remainder of the Trading Bot funds resulted in some losses, but the value of these assets is roughly $1.7M at the time of writing.

When the project is ready Plot holders will be able to claim all the HORDE tokens pending since the contract was paused and all future rewards their plots would have yielded. Once Plot owners have their HORDE tokens they have 2 options: They can cash their HORDE token and take out their portion of the remaining liquidity or convert their HORDE tokens to HORDE Vault Tokens. Users will be able to split their HORDE tokens between cashing out and Vault Tokens.

Cash-out Option

Let’s talk about what it looks like for someone to cashout their portion of the remaining liquidity. The breakdown is fairly simple. First, a percentage of the number of Vault Tokens one has would be calculated by dividing the number of tokens one holds by the total number of Vault tokens. Currently, there are about 703,000 Horde tokens that are available to be converted to Vault tokens.

With roughly 1.7M in Liquidity, each Token would hold a value of roughly $2.40. A brand new Plot produces 30 tokens and its corresponding value in Vault tokens would be roughly $72 dollars. For the sake of these calculations, the decay date is for an unmutated Plot, if plots are mutated you would need to halve the numbers. To be clear Mutated plots will still get their full rewards, but since the rewards per day are half of an unmutated plot the math is different. Now, since no one created a plot just today, each day a Plot has left until decay equates to roughly $0.24 of value. So if a Plot has 100 days until decay it has a cash-out value of $24, a plot with 75 days until decay $18, and a plot with 50 days until decay would represent $14.66 in cash-out value. Each token held in a wallet would also hold a cash-out value of $2.40. Once users are able to claim all rewards they can choose to cash out all tokens or just a portion. Once the time to claim or deposit tokens is closed, the numbers will be finalized but these are an estimate based on the data available. Once users are able to claim all their HORDE Tokens there will be 3 weeks to deposit HORDE tokens into the 2 contracts. After the 3 weeks, the remaining HORDE tokens that are not in either contract (to cash out or convert to Vault Tokens) will effectively have no value.

If a Plot owner chooses to cash out all of their liquidity, 100% of their HORDE tokens will be converted to the corresponding BUSD value minus 10% and they would effectively exit the protocol. This means any future benefits of being a Plot owner are forfeited including but not limited to future revenue sharing and token airdrops. If a user sells some of their rewards their share in Vault and DEX tokens will be pro-rated by what they deposit in the Vault contract.

HORDE Vault Tokens, DEX Tokens & Revenue Sharing

Plot owners that lock their Vault tokens will get a portion of the gains that the HORDE vaults produce every month. Not only that, but those that decide to lock their tokens and not liquidate them, will receive Airdrops of the HORDE DEX tokens when the HORDE DEX goes live. Out of the total supply of DEX tokens, 15% of the total supply will be airdropped to Plot owners over time. An additional 2% of the total supply will be Airdropped to all Scene NFT holders.

So let’s start with how the Vault Tokens will function in this next phase of HORDE. The word “Vault” is key as the tokens are locked into the contract. The locked tokens will produce a monthly yield, which will be claimable every month. In the future Vault, Tokens will be able to be purchased in limited quantities and locked in addition to the ones that are awarded to each current Plot holder in this transition. Once Vault Tokens and their corresponding BUSD value are locked in the Vaults (contract), this liquidity will be used in a variety of trading strategies such as: options, futures, interest rate swaps, leveraged trading, and cross-chain arbitrage trading all with delta-neutral positions.

Each month gains from the vaults will be split into three pools (Vault Rewards, compounding, and development) with the largest share going to rewards for Vault token holders each month.

The Vault Tokens are designed to go up in value over time because of the compounding of rewards each month. This is important because these Vault Tokens will be sellable P2P in the form of an NFT, or similar device in the future.

A hypothetical example: For this example let’s suppose that HORDE Vault Tokens are distributed on day 1 at a value of $2.40 each (the value of the Vault Tokens is the Vault Liquidity divided by the number of tokens $1.7M/703192.48 Tokens.) And let’s suppose after a month of trading the Vault has produced a reasonable 10% return on the 1.7M. And after the distribution of gains, the total that is being used to trade is now $1.775M. Since this total has gone up in value while no new tokens are being deposited the value of each token goes up. The value of each token now represents $2.52 each, an increase of 3.61%. This would be the purchase price for any Vault Tokens until the next compounding period when the price would then be adjusted again as the pool grows as gains are compounded.

Each month’s rewards will be claimable and users can withdraw their rewards. The rewards will be in BUSD and there will be no taxes to withdraw, just standard BSC gas fees.

HORDE DEX

The HORDE team has had a DEX on the roadmap for several months and it is a key part of the future HORDE ecosystem. With confidence in most CEXs wavering, there is a space for more DEXs in the marketplace. The HORDE team has already been working on getting a HORDE DEX up and running. Since there are many options for users to choose from the HORDE DEX will include features that are unique to the marketplace. Including the ability for LMS projects to have access to the LMS via the DEX and not just through a custom-built exchange on a dApp. Add in a launch pad and tie-ins to the rest of the HORDE ecosystem as well, HORDE Vaults, Wasteland Defense, zNFTs, and, the HORDE DEX will be like nothing else out there. Plot holders will get an Airdrop of 15% of the supply of the HORDE DEX tokens. The 15% will be distributed over time, 10% over 6 months after the launch of the DEX, and the remaining 5% of supply in batches over the 3 months following the 1st anniversary of the HORDE DEX. These tokens will be distributed to all original Vault Token holders with non-ROI wallets getting a larger share. As mentioned earlier, NFT Scene holders will receive an additional 2% of the total supply as well.

UPDATE to HORDE zNFT

During voting for the next phase of HORDE, zNFTs were purchasable with HORDE tokens. 1000 were available to mint for anyone with HORDE tokens. For these 1000 zNFTs minted with HORDE, $200 BUSD was allocated to trading as opposed to the $160 BUSD that prior minted zNFTs had allocated. There were however some delays on the dApp update and some wallets were able to mint more than the max 1 limit. In total, 173 were minted over the limit of 1 per wallet. This error will be covered by HORDE Pool funds and $34,600 BUSD will be added to the zNFT Vault as there is currently a deficit from these transactions. After a few delays, the zNFTs are up and running.

When the zNFTS first launched part of the funds from each mint went to HORDE’s Liquidity Manager. With the Liquidity Manager being dissolved this is no longer necessary. So there will be an update to the zNFT tokenomics which allocates a much larger portion of each zNFT minted towards the trading pool.

Distribution on MINT: Trading Bot:70% (was 40%)

Vault Pool: 10% (30% was going to LM)

Horde Pool:20% (was 25%)

Distribution on PROFIT:

NFTs Holders:50% (Unchanged)

Trading Bot:25% (Compound into the same bot to generate more revenue for next payout) (Unchanged)

Horde Pool 25% (Previously going to LM and charity).

This change will make the zNFTs more lucrative as each one minted adds more capital to the trading pool thus providing higher returns and rewards.

So what does this all mean?

The HORDE Vaults, zNFTs as well as the upcoming Wasteland Defense game, and HORDE DEX will all be part of a synergistic ecosystem. While they are each a project in their own right, there will be tie-ins throughout the ecosystem and all will contribute to passive income for Vault Token holders. With the capital that is already in the ecosystem projections are that the income once just the HORDE Vault and zNFTS are up and running there should be upwards of 300K in revenues each month. Below is a sample breakdown showing projections for Vaults and zNFTs with just the capital that is currently in the ecosystem and compounded gains. Once things like the DEX and game are live, the income for these will affect these numbers greatly by adding more and more income!

What can a Plot Owner expect for returns going forward?

With the pivot to a profit/income share model, the monthly reward structure will look very different than what it was with the Plot payment structure. A few key differences are that Vault Tokens do not expire like Plots did and there is no more need for additional investors to keep the Vaults running. There is no chance of emissions passing income as only the income is being distributed. There is the other factor of the underlying Vault Tokens will appreciate with time as more and more gains are made and compounded. Vault tokens are designed to not only go up in value over time but produce higher rewards month to month. The TVL in the Vaults will continue to grow as gains are compounded.

The goal is to have the vaults produce a high return all the while reducing risk using various delta-neutral strategies. The estimated returns for Vault Token holders are between 6%-9% a month on the value of their Vault Tokens. These returns will compound monthly and grow as the underlying Vault Tokens appreciate. Assuming a 10% monthly gain because of the compounding effect tokens after a year would be producing 12% a month based on their initial value. These numbers assume no other outside revenue. As the DEX and game go live these numbers should only increase as this money will be added to the capital for trading.

The Next Steps

For now, the HORDE community will need to hold tight while the protocol is overhauled. While everyone wants this transition to be over with the reality is…it takes time. There is an enormous amount to be done by all parts of the team. And rushing things in crypto usually/always ends in disaster. More and more information will be released as it is available.

The team is committed to the project and the community and is ready to prove themselves with results. There are still so many good things to come and the HORDE team has visions to see this ecosystem flourish.

The information here is intended to be general in nature and is not personal financial product advice. It does not take into account your personal objectives or financial situations. All numbers presented are estimations and are subject to change.