# What is Hex One?

<figure><img src="https://1724657572-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F52WGnpD0m1uV41Uj2tVY%2Fuploads%2FCAAB4pDFuLyp50w8Etpy%2FHEX1-ORANGE-100.jpg?alt=media&#x26;token=9bc9f19a-a965-4ca7-bb9f-adcbdae80806" alt=""><figcaption></figcaption></figure>

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**TLDR:** [Hex One](https://hex1.club) protocol was built to provide a system of stability to the HEX ecosystem. $HEX1 is a stablecoin backed by T-SHARES and is collateralized above 100%. $HEX1 is the first stablecoin with embedded yield, provided by Hex T-SHARES. It's also a completely finished product, with no admin keys, following the great example set by the god genius 🧠 Richard Heart 👑

&#x20;                                                                      &#x20;

&#x20;                                                                       **1 $HEX1 = $1 worth of Hex**
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Let's dive into a quick overview of the protocol.

#### Benefits

> * Get liquidity without selling your $HEX
> * Earn yield just by holding a stablecoin
> * Automatic collateral protection: tshares generate more HEX while in the collateral vault, thus buffing the peg with an additional layer of protection

#### Features

> * Collateral = T-Shares
> * Re-Borrow against your open positions
> * Embedded bootstrap for liquidity boost.
> * No admin keys that can compromise the protocol

## Borrow Diagram

Check how you can mint $HEX1 in a few fast steps.&#x20;

<figure><img src="https://1724657572-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F52WGnpD0m1uV41Uj2tVY%2Fuploads%2FmZHTwzAC0Tx4xasVRGe1%2Fphoto_2024-06-16_15-54-04.jpg?alt=media&#x26;token=597f61a4-ba7b-4eef-aea9-d55dad18b7de" alt=""><figcaption></figcaption></figure>

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**TLDR:** Create a stake through Hex One protocol which goes into the Hex One vault. In turn, the vault mints $HEX1 in the same dollar value as the deposit. Participants can use $HEX1 to provide liquidity and farm $HEXIT, Hex One's Protocol Incentive Token, and HEX which is generated through a 1% borrow fee.&#x20;
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### Quick Access: Jump right in

Check which topic you want to learn bout and let's dive deep!

{% content-ref url="basics/how-usdhex1-works" %}
[how-usdhex1-works](https://learn.hex1.club/hex-one-protocol/basics/how-usdhex1-works)
{% endcontent-ref %}

{% content-ref url="basics/how-usdhex1-peg-works" %}
[how-usdhex1-peg-works](https://learn.hex1.club/hex-one-protocol/basics/how-usdhex1-peg-works)
{% endcontent-ref %}

{% content-ref url="basics/overcollateralized-vault" %}
[overcollateralized-vault](https://learn.hex1.club/hex-one-protocol/basics/overcollateralized-vault)
{% endcontent-ref %}

{% content-ref url="basics/hex-one-protocol-benefits" %}
[hex-one-protocol-benefits](https://learn.hex1.club/hex-one-protocol/basics/hex-one-protocol-benefits)
{% endcontent-ref %}

{% hint style="info" %}
**TLDR:** $HEX1 represents a future HEX payment (a T-SHARE). Therefore, the stablecoin has embedded yield. The peg is protected by the collateral, the T-SHARES, that cannot be retrieved before maturity.
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### Fundamentals: Dive a little deeper

Let's discuss how the vault, collateral and pupamentals all work perfectly together to create the most perfect stablecoin built to date.

{% content-ref url="tokenomics/vault" %}
[vault](https://learn.hex1.club/hex-one-protocol/tokenomics/vault)
{% endcontent-ref %}

{% content-ref url="broken-reference" %}
[Broken link](https://learn.hex1.club/hex-one-protocol/broken-reference)
{% endcontent-ref %}

{% content-ref url="tokenomics/liquidation-process" %}
[liquidation-process](https://learn.hex1.club/hex-one-protocol/tokenomics/liquidation-process)
{% endcontent-ref %}

{% content-ref url="tokenomics/impermanent-loss-protection" %}
[impermanent-loss-protection](https://learn.hex1.club/hex-one-protocol/tokenomics/impermanent-loss-protection)
{% endcontent-ref %}

{% content-ref url="tokenomics/pumpamentals" %}
[pumpamentals](https://learn.hex1.club/hex-one-protocol/tokenomics/pumpamentals)
{% endcontent-ref %}

{% hint style="info" %}
**TLDR:** The vault deposits (collateral) are protected against Impermanent Loss (IL), because stakes cannot be emergency stopped due to contract ownership. Therefore only after maturity - 15 years, or 5,555 days - can **$HEX1** be burned back for HEX. Adding to that, strong pupamentals like buy-back and burn, farming, liquidity bootstrapping, and an airdrop are implemented to make the  **$HEX1 peg** protected and stabilized
{% endhint %}