June 7-th Helio Money held an Ask Me Anything session with the ICOSpeaks team at our telegram chat.
1️⃣ Block 1 – self-introduction from today’s speaker
Before we go to the first set of questions, could you please do a short self-intro?
👨💻 Helius | Founder of Helio Protocol | @Helio_Hayman
I am Helius, the founder of Helio Money
Before founding Helio, I used to work with traditional finance and then made the switch to DeFi around 3 years ago!
2️⃣ Block 2 – project introduction by speakers
First set of questions to introduce the project!
Q: What is Helio Protocol? A: 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.
Q: How did you come up with idea that would work and that is needed atm? A: I came up with the idea together with my co-founder as we saw that there were many problems with existing stablecoins. Helio solves the issues with algorithmic stablecoins, such as UST.
We chose to build on BNB because it is affordable as there are low gas fees and is accessible to everyone
Q: Where does BNB come to place? A: The only crypto asset used as collateral to mint HAY is BNB. As a result, in order to borrow HAY on Helio, users must first deposit BNB. Users will be able to borrow up to 80% of the total value of the BNB deposit in HAY stablecoin because it is an over-collateralized stablecoin.
Q: How is the peg protected? A: Here is how the price stability mechanism works :
When HAY’s price is above USD1.00:
The supply of HAY will have to be increased. In this scenario, HAY is at a premium, and borrowers are incentivized to borrow more HAY to sell for other assets.
Helio will reduce HAY farming rewards by decreasing HAY borrowing interest to reduce demand for HAY farming.
When HAY’s price is below USD1.00:
The supply of HAY will have to be reduced. In this scenario, HAY is at a discount, and borrowers are incentivized to purchase HAY from the market to pay back the debt.
Helio will increase HAY borrowing interest to decrease HAY borrowing demand, which increases HAY farming rewards.
3️⃣ Block 3 – question from ICO Speaks team
Questions from ICOSpeaks team! Q: What is over-collateralization? A: The collateral provided is worth more than enough to cover potential losses in the event of default.
For example: John deposits $100 USD in BNB as collateral on Helio. Helio allows John to borrow $80 USD in HAY stablecoin (80%). The remaining 20 USD in BNB is locked in the Helio protocol as over-collateral. John will be granted access to the $20 in BNB used as over-collateral once his HAY loan is paid off.
Q: How can I earn yield with $HAY? A: HAY yield comes from Helio’s revenue pool, which is derived from HAY’s borrowing interest and collateral being staked by Helio’s protocol.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.
Q: What makes $HAY sustainable?
A: 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.
4️⃣ Block 4 – Community Voice. Community asks the questions they are interested in. Q: Do you have An Ambassador Program available? If yes, how can I join it? And can you tell us what the benefit Available for the Ambassador? A: We are planning on launching our ambassador program after we launch $HAY! You can expect that to happen in the near future so stay tuned to our social media! Q: Is your project only for English speaking countries or is there a community for other language users?
A: We have different language channels for our international community on our Discord! You can join here: https://discord.gg/sVnurzpK9A Q: Where can I get the latest information and what is the latest plan for your project?
A:Stay tuned on all our social media for updates on Helio! We are releasing a HUGE announcement very soon! 👀 Q: Do you have any plan for burning tokens in the future to reduce the supply of the token and increase its investment attractiveness? A:Burning tokens won’t be necessary due to the over-collateralization nature of HAY. Q: Have you being audited ? Have not heard you talk about that security of funds is what every investor craves for and plans to escape incase of insecurity if funds,scams and rug pulls ? How strongly built are your security put in place? A:We have been audited by 5 market leading firms in the cryptocurrency space! Q: Staking program is very important for every project? Can i stake your Token? Do you have any plan of starting staking programme? A:Staking will be a be part of Helio. More specifically liquid staking, that means users will be able to generate yield within Helio protocol and also generate extra yield with synthetic tokens onther protocols. Q: Do you allow suggestions and feedback from the community? Are we allowed in decision making, do you put community into consideration ?
A:Yes, we have a suggestions channel on our Discord! Feel free to drop any ideas you might have there!
ICOSpeaks hosted an AMA Session with the Helio Money Team. That’s all for today.
