Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Hector Finance Launches its Stablecoin $TOR

Cryptocurrency Feb 11, 2022 11:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Hector Finance Launches its Stablecoin $TOR
 
TWTR
+2.57%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LUNAt/USD
-2.79%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Hector Finance has successfully launched TOR, its much-awaited stablecoin, and a key component in the Hector ecosystem. Hector Finance has also enabled yield farming for the TOR Stablecoin. Currently, $TOR LP Farming has surpassed $3.5M TVL with only 800 beta testers and investors are earning 60% APY making TOR yield farms one of the best in the market and providing the most consistent yield farming on the FTM chain.

TOR stands for Tyche Owned Reserve. Tyche was the governing tutelary deity who oversaw a city’s wealth and prosperity, as well as its fate. She is the daughter of Aphrodite and Zeus or Hermes in Greek mythology, and her role at the time was to deliver messages to humans about external occurrences beyond their control. Tyche is the Greek goddess of luck, chance, providence, and fate.

Terra, one of the most successful algorithmic stablecoins in the space, is the inspiration behind TOR. TOR has the goal of making $HEC more deflationary while also providing the Fantom chain with its own algorithmic stablecoin.

TOR can only be created by burning HEC. The HEC pricing oracle, built with Time Weighted Average Price, can be used to swap TOR for newly minted HEC. Oracles are an important part of any stablecoin’s base functionality. In the context of blockchain technology, an oracle is a mechanism designed to supply data to smart contracts. In general, a Stablecoin is only valued and trusted if its price remains constant. The price of TOR is $1. What kind of ‘backing’ does it have? TOR’s backing is made up of two layers:

  • Smart-contract algorithms and the HEC/stable LP
  • The $100,000,000 Hector Finance Treasury
  • How does TOR work?

    The Hector utility coin (HEC) is the TOR Stablecoin’s counterpart. Hector’s price rises when demand for TOR rises, according to supply modulation. The primary mechanism for keeping pegs in place is expansion and contraction. TOR’s stability is ensured via a simple swap mechanism: at any time, 1 TOR can be switched for 1 dollar’s worth of HEC. If the value of TOR falls below $1.00, buyers can purchase it and use the method to redeem it for $1.00, allowing them to profit. Demand for TOR rises when buyers do so, causing the price to rise again until it reaches $1 USD. These financial incentives function quickly to keep TOR stable.

    Since Hector Finance owns the majority of HEC/DAI and HEC/USDC, sufficient liquidity is ensured when a TOR redeem operation occurs. Despite the existence of a curve pool as “Layer 0” for shifting TOR back and forth, it is still needed to mint/redeem on a much less frequent basis. The price of HEC will (slightly) increase or drop as a result of the mint/redeem at Layer 1. Although the price of HEC has no impact on the minting/redeeming of TOR in Layer 1, if the price of HEC drops more than expected/wanted, the Hector Finance treasury will be used to stabilize the value of HEC through buybacks and burns.

    Hector Finance’s goal of combining the rebase model with enhanced scarcity will be made possible thanks to TOR. Deflation is the ultimate goal. Because TOR can only be minted with USDC or DAI which is then used to burn HEC, the demand for HEC rises as well. TOR will soon be available for use as collateral in Hector Bank, the decentralized lending and borrowing network built by Hector Finance in partnership with Ola Finance. When TOR is deposited into the lending pool, an oTOR token is provided to the supplier, and the oTOR bears all of the lending interest.

    The Road Ahead for Hector Finance

    Hector Finance aims to bring as much value to the $HEC token as possible. The project’s main goal is to achieve zero inflation so that everyone’s share of the pie grows over time. The supply will eventually be lowered to the point where it reaches a number that allows for sufficient burns while also providing competitive rewards. What steps will it take to become deflationary? They will mix the best of both worlds: a rebase project with a competitive APY (in comparison to farming and node projects), as well as an extensive ecosystem of utility to boost the HEC token’s value.

    The demand for the HEC token will rise as the token’s utility grows. With the addition of utility to the token, APY becomes less essential over time, as the value of purchasing the token is now a combination of APY rewards and price increases due to demand and burns. Hector’s project revenue is deposited into the DAO Wallet, with excess funds going into marketing, development, salaries, and, most importantly, buybacks and burns.

    Twitter (NYSE:TWTR): https://twitter.com/HectorDAO_HECTelegram: https://t.me/hectorDAOReddit: https://www.reddit.com/r/hectordao/Youtube: https://www.youtube.com/c/HectorDAOInstagram: https://www.instagram.com/hectordaohec/Medium: https://medium.com/@HectorDAODiscord: https://discord.gg/hectorGithub: https://github.com/HectorDAO-HECTikTok: https://www.tiktok.com/@hector_daoBuy HEC on Fantom: https://docs.hectordao.com/how-to-buy/for-users-already-on-the-fantom-networkBuy HEC on FTMScan: https://ftmscan.com/token/0x5C4FDfc5233f935f20D2aDbA572F770c2E377Ab0

    Media Contact:

    Name: Henry DavisMail: marketing@hector.financeCity: BristolCountry: United KingdomWebsite: https://hector.finance/

    Continue reading on CoinQuora

    Hector Finance Launches its Stablecoin $TOR
     

    Related Articles

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

    •            Enrich the conversation, don’t trash it.

    •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

    •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

    • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
    • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
    • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
    • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

    Write your thoughts here
     
    Are you sure you want to delete this chart?
     
    Post
    Post also to:
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
     
    Are you sure you want to delete this chart?
     
    Post
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Continue with Google
    or
    Sign up with Email