π² HRD and veHRD
$HRD, the protocol's native token, can be vote-locked for several yield incentives along with governance rights.
veHRD is a vesting and yield-boosting system inspired by Curve's veCRV mechanism.
$HRD tokens (minimum of 0.000000001 $HRD) can be locked for veHRD as follows:
1-week lock: 0.5% $HRD return
1-month lock: 2.5% $HRD return
1-year lock: 45% $HRD return
Acquiring veHRD grants holders access to "governance power" in the form of voting rights, yield from The Hoarder, and linearly fixed $HRD emissions (as detailed above). 1.5m $HRD tokens were allocated to veHRD emissions. The $HRD rewards will continue for veHRD holders until all 1.5m have been emitted. At that point, veHRD will continue to earn yield from $USDH's Hoarder along with their access to voting rights.
This model is by design - as the Hoard grows its TVL ($USDH collateral), this will increase The Hoarder's real yield potential and phase out the need for $HRD emissions. Over time, veHRD holders will earn sustained yield from $USDH collateral strategies without the need for supplemental $HRD emissions. These mechanisms encourage long-term participation in the ecosystem.
$HRD can be claimed (principal + rewards) at the end of the lockup period. $USDH earnings. on the other hand, accrue perpetually and can be claimed anytime. Hoard is targeting a $USDH farming yield of 10-25% APR. This estimate will be updated once specific strategies have been deployed by The Hoarder.
Each time $USDH is claimed, the unclaimed $USDH resets and begins accruing again from 0 (proportional to the veHRD share). Any unclaimed $USDH is automatically claimed at the end of a lockup period along with the $HRD principal + emissions.
When it comes to strategic protocol decisions, veHRD holders are pivotal in assisting with:
Whitelisting new forms of collateral to back $USDH
Modifying current Hoarder yield strategies (where and how the protocol is farming)
veHRD voting power is determined by:
Cumulative locked $HRD principal across all vaults
Seconds locked cumulatively across all vaults
veHRD holders can delegate their voting power to another address up to once every 24 hours. Delegates do NOT receive the veHRD's rewards - only voting power. veHRD lockups are non-transferrable and illiquid unless tokenized or wrapped, which is not currently natively supported.
The ability to delegate veHRD voting power opens up an array of partnership and bribery opportunities - think "The Hoard Wars". We expect protocols to compete for our farming collateral (they want TVL) and also for a spot on our collateral whitelist (other algostables want adoption).
Maintaining decentralization and incentives through token-weighted governance is a critical aspect of being the #1 stablecoin in DeFi.
Additional details about veHRD will be revealed as the roadmap progresses.
veHRD is non-transferable and does not trade on liquid markets.
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