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.