Hex One Protocol
  • 💵What is Hex One?
  • ⭐Basics
    • How $HEX1 works
    • How $HEX1 peg works
    • Overcollateralized vault
    • Hex One Protocol Benefits
  • 📊Tokenomics
    • Vault
    • Collateral Ratio
    • Liquidation Ratio
    • Liquidation Process
    • Impermanent Loss Protection
    • Price Feed
    • Pumpamentals
  • 📊Audits
    • Certik
    • Coverage
  • 📜Contracts [to do]
    • Tokens
    • Hex One Protocol
    • Vault
    • Farming
    • Bootstrap
    • Liquidations
  • 💾Versions
    • V1 [current]
    • V2
  • 💱Hex One Incentive Token
    • Incentive Token ($HEXIT)
    • Incentive Token Distribution
  • 💱Hex1 Debt Title (HDT) NFT
    • Hex1 Debt Title NFT
  • 💸Bootstrap
    • Bootstraping Hex One
    • Bootstrap Benefits
    • How to Bootstrap
    • Bootstrap HEXIT Distribution
  • 🤑Airdrop
    • Airdrop Benefits
    • How to Participate
    • Airdrop HEXIT Distribution
  • 🔂BORROWING
    • How to Borrow
  • 🧑‍🌾Farming
    • How to Farm
    • Yield / APRs
    • HEXIT Farming Inflation
  • 🖼️Branding
    • Hex One Branding
  • 🏫References
    • References
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  • Embedded Yield
  • Overcollateralized Vault
  1. Basics

Overcollateralized vault

Hex One is the first native yield-bearing stablecoin, backed by T-SHARES. This means the number of HEX in the collateral vault, keep increasing.

PreviousHow $HEX1 peg worksNextHex One Protocol Benefits

Last updated 11 months ago

TLDR: T-shares represent a HEX payout. $HEX1 represents several T-SHARES. Therefore, $HEX1 = increasing future HEX payout.

Embedded Yield

Hex One is the first stablecoin protocol with embedded yield. This can be translated into the $HEX1 vault collateral automatically increasing in numerary value: T-SHARES represent an ever-increasing number of HEX tokens.

Overcollateralized Vault

According to our , the vault will contain the following collateralization ratios due to the native HEX yield:

Collateralization
15 Years (MAX)

Base

508%

HEX/DAI < 50%

254%

HEX/DAI > 50%

761%

This means that if HEX drops 50%, the vault continues to be 254% overcollateralized. In other words, HEX would need an 80% drop for the vault to be below 100% collateralization. This is assuming all hex stakes have claimed the maximum amount of HEX1 stablecoin, per stake created.

Oppositely, if HEX increases 50% the vault automatically increases the collateralization to 761% until depositors mint HEX1 to satisfy the delta between the price change.

calculations
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