💲 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.
Last modified 8mo ago