# V1 \[current]

<figure><img src="https://1724657572-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F52WGnpD0m1uV41Uj2tVY%2Fuploads%2FIr68OaxZ8IFzSFfHVcSS%2FHEX1%20v1.png?alt=media&#x26;token=901d7737-3921-46a7-b2c6-80239f5079ae" alt=""><figcaption><p>Hex One Protocol V1</p></figcaption></figure>

## V1 Basics <a href="#what-is-a-vault" id="what-is-a-vault"></a>

The current version accepts only one token $HEX.&#x20;

## V1 Functionality <a href="#how-vaults-work" id="how-vaults-work"></a>

Deposit $HEX that is converted into T-Shares. Borrow against your T-Shares. Claim the stake by repaying the total borrowed $HEX1.&#x20;

If the price of the collateral drops and the peg goes < $1, vs other stablecoins there is an incentive to buy $HEX1 since each token redeems $1 worth of Hex. Liquidations open the door to big discounts.

If the price of the collateral goes up, depositors may claim more $HEX1. Additionally, if the peg goes > $1, it probably means depositors need to acquire $HEX1 to redeem the underlying collateral (endStake).