Lending Protocol Rewards

as of 02/01/2025

In the Hatom Lending Protocol, users can generate revenue by supplying their assets to a Money Market, where these funds are made available for others to borrow. The interest paid by borrowers is shared between the lenders and Hatom, with Hatom's portion known as the Reserve Factor.

To further incentivize participation in Money Markets, Hatom offers additional rewards through the Booster Module. Users qualify for these rewards by staking a percentage of their collateral's value in HTM tokens within the Booster. The more HTM tokens staked relative to the collateral, the greater the rewards earned, encouraging users to increase their staking ratio for maximum benefits.

For more information on how the Booster Module works, please refer to the official Booster documentation.

Sustainable Rewards Approach

Hatom's approach marks a strategic shift from traditional models. Recognizing the failures of many DeFi projects due to flawed tokenomics, particularly those reliant on liquidity mining programs, Hatom has chosen a different path to incentivize users.

Instead of relying on traditional liquidity mining, Hatom generates substantial revenue through its core products: the Lending Protocol, Liquid Staking Module, and Hatom USD. These products form the foundational building blocks of a thriving DeFi ecosystem and allow other protocols to leverage them to build reliable products.

By allocating a portion of this generated revenue for user rewards, Hatom adopts a sustainable model that avoids the risks associated with over-reliance on its native token, HTM. This strategy aims to create a stable and long-lasting ecosystem, benefiting users without the downsides of liquidity mining and high-emission token models.

Claiming Rewards

In the Lending Protocol, rewards are generated every second and can be claimed instantly through the Rewards Tab, conveniently located in the top right corner of the Lending Protocol's main page. Users can view their accumulated rewards and claim them at any time.

While interest earned through HTokens is automatically compounded, additional rewards provided as incentives must be claimed manually. To realize the full potential of the displayed APY, users must actively claim and reinvest these rewards.

Accumulator

The Accumulator is a new feature in the Rewards section, giving users the option to claim their rewards in two forms: USDC or HTM tokens.

If users choose the HTM option, they receive an additional 5% bonus on their total rewards. For example, if a user has $1,000 in rewards in USDC and opts to claim them in HTM, they will receive $1,050 worth of HTM tokens.

When claiming rewards in HTM instead of USDC, the exchange is facilitated through the AshSwap aggregator, allowing users to set their preferred slippage rate. This ensures the exchange proceeds only if it meets their set conditions, creating a more favorable exchange environment. This feature encourages users to claim rewards in HTM, boosting demand for the token within the platform.

The Accumulator serves two primary purposes: maximizing user rewards through the HTM option and driving demand for the HTM token within the platform's ecosystem. When users receive rewards in HTM, the system exchanges USDC on the open market for HTM tokens, which are then sent to the user with the bonus. This process enhances rewards without inflating or diluting the token's value, further strengthening demand for HTM.

This feature gives users flexibility in how they claim their rewards while contributing to the growth and stability of the HTM token.