HTokens

as of 02/01/2025

HTokens are interest-bearing tokens that increase in value over time based on the supply APY of their associated money market. They act as proof of ownership for your deposited assets. When redeeming HTokens, the amount of underlying tokens you receive is determined by dividing the number of HTokens by the current Exchange Rate.

Hatom's HTokens utilize an exchange rate appreciation model. This means that as the supply APY increases, the exchange rate between HTokens and the underlying assets also rises. Unlike some systems where more tokens are issued over time, the quantity of HTokens remains constant for any given deposit. Instead, the value of HTokens appreciates over time as the exchange rate increases, reflecting the accrued interest.

Example:

Bob deposits 1 EGLD in the EGLD Hatom pool and receives 40 HEGLD in return, with an initial exchange rate of 0.025 EGLD/HEGLD. As interest accumulates, the exchange rate rises based on the interest earned in the EGLD pool. After holding his 40 HEGLD for a year, Bob redeems them and receives 1.05 EGLD. This means the exchange rate has increased from 0.025 EGLD/HEGLD to 0.02625 EGLD/HEGLD, reflecting a 5% APY minus any gas fees paid for the transactions.

HTokens Utility

HTokens offers several benefits to holders:

1. Interest Earning and Redemption: By holding HTokens, you earn interest on your deposits. You can redeem your invested funds anytime by burning the tokens.

2. Liquidity and Trading: HTokens can be traded on decentralized exchanges (DEXes), providing immediate liquidity and flexibility.

3. Collateral for Loans: Use your interest-bearing HTokens as collateral to secure loans within the Lending Protocol, allowing you to borrow while your tokens continue earning interest.

4. Minting Stablecoins: You can mint stablecoins like USH (Hatom’s native stablecoin) by leveraging your HTokens as collateral, providing access to stable assets while keeping your tokens invested.

5. Structured Product Investments: Transform your interest-bearing HTokens into structured products, such as farms and vaults, to earn additional yields and maximize returns on your investment.

To monitor the exchange rate of HTokens, visit the Prices Page and select Hatom Tokens for the latest updates.