HYPE PROTOCOL Adds Five New Pairs
Note: if you are unfamiliar with Hype Protocol, please read how it works in detail here.
BUILD Finance, a decentralized venture builder, is happy to announce that following the first stage of perpetual farming on the Hype Protocol, the community has executed a proposal to add five new pairs to the platform. For the first time, HYPE will be hosting external projects.
Following the launch of HYPE on Halloween 2020 where the BUILD community first tested the Liquidity Locking Protocol, $BUILD and $METRIC pools were seeded with bootstrapping incentives over a 7-day period each. Drawing upon the results and observations, the community put forth a proposal to establish new pairs.
10 tokens were short-listed for the snapshot proposal to select the next incentivized HYPE pools. A snapshot of BUILD balances was taken at the time of the proposal to ensure voting eligibility. The top 5 tokens that received the most votes are:
- $MUSE is a native token for VeryNifty, an NFT tamagotchi-like game, where $MUSE are staked to summon and keep your NFT pets alive, do battle, and rank up to access advanced features.
- $ZLOT (zLot Finance) is a staking protocol which enables small HEGIC holders to pool holdings and earn option premiums.
- $PCT is a governance token for Percent Finance, a lending/borrowing platform.
- $YAX (yAxis) is a meta yield farming platform focused on providing a true set-n-forget yield farming experience for passive investors.
- $NSURE (Nsure Network) — a decentralized insurance and reinsurance market where underwriters can diversify and provide coverage on uncorrelated risks to earn leveraged insurance premiums.
- The kickstart subsidy stage goes for 7-day, after that pools run on perpetual tax revenue rewards.
Benefits & Risks for LPs and Tokens Locked
- All Hype pairs reward users for providing liquidity over longer time horizons. Short-term traders and farmers are penalized and incur taxes.
- Liquidity removal from all HYPE/X pools is taxed and redistributed back to the pool as rewards — 20% of the withdrawal is taxed for redistribution (40% of the HYPE in the 50/50 pair).
- HYPE further takes a 1% tax on all transactions — any time someone sells or sends HYPE, a tax revenue is generated and redistributed back to all HYPE pools. For example, if someone sells HYPE for ETH, liquidity providers in the MUSE/HYPE will receive these taxes in the form of farming yields.
- To get the most out of HYPE, you should commit to providing liquidity for a long enough period for your HYPE earnings to offset any withdrawal taxes, and consider the usual risks of impermanent loss from being a liquidity provider.
- Exercise discretion when entering new liquidity pools, and expect high volatility in the initial stages of bootstrapping a new pool when yields are high.
About BUILD Finance
For anyone new here, BUILD Finance is a community-owned venture builder DAO. $BUILD is a governance token that also gives holders the pro-rata ownership claims on all assets and revenues owned and produced by BUILD. The current suite of products include:
- Metric Exchange — a DEX aggregator that allows for limit orders trading for any ERC-20 token, which can also aid other projects with liquidity problems called Metric. The new functionality has just been launched. For example, here is a link to MUSE/DAI market
- Hype Protocol — a liquidity locking protocol that provides long-lasting liquidity provider incentives.
- OTC Market — a decentralized peer-to-peer OTC market.
- bGold — a synthetic token pegged to gold (in early stages of development).
- Updown — binary options for volatility trading (in early stages of development).
- HYPE App: https://hypeup.finance
- Alternative UI (by vfat)
- Medium: HYPE Liquidity locking protocol
- Discord: HYPE Channel on BUILD
- Twitter: HYPE Protocol
- Telegram: Hype Protocol
- HYPE Gitbook
- BUILD DAO Home Site
- https://stake.letsbuild.finance/ — Build LP Staking
How to Participate in Liquidity Mining on HYPE?
Hype Protocol requires users to
- Deposit funds to a 50/50 HYPE/X Uniswap liquidity pool, and
- Stake the LP tokens at https://hypeup.finance.
How do I unpool my liquidity?
To unpool, you must first unstake from the HYPE/X pool on https://hypeup.finance. After unstaking, a red button to unpool your HYPE/X LP tokens back into HYPE and X tokens will appear on the same page at https://hypeup.finance (minus the HYPE withdrawal tax). Going to unpool from Uniswap directly will not work.
Why withdrawal taxes instead of permanently locking liquidity?
One of the first questions we get about HYPE is the decision to tax withdrawals, as opposed to permanently locking the liquidity (as in CORE).
With locked liquidity, early LPs are diluted by later LPs, and will need to resort to a secondary market for trading LP tokens when the yield they signed up for initially no longer holds. We believe that disincentivizing behaviors (LP withdrawal) is more economically efficient than preventing it outright and give users a choice.