# 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>

{% hint style="info" %}
**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**
{% endhint %}

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>

{% hint style="info" %}
**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;
{% endhint %}

### 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.
{% endhint %}

### 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 %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://learn.hex1.club/hex-one-protocol/what-is-hex-one.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.