# Pumpamentals {% hint style="info" %} **TLDR:** Let's find out why $HEX1 is the best stablecoin out there - the only one that generates more collateral (yield), has an embedded meme incentive token, and is designed to make HEX pump! {% endhint %} ## Earn yield without volatility The most important feature of **$HEX1** is the lack of volatility or the increased price stability. Additionally, because $HEX1 is backed by T-SHARES, hodlers of the token will get paid a yield, in HEX. ## Farm $HEXIT by providing liquidity Farm participants also receive Hex One Incentive Token, $HEXIT, that can be used to provide liquidity with other token pairs, and staked in high-yield staking pools. ## Hex One will make $HEX scarcer Every 1 $HEX1 = $1 worth of Hex, therefore each time there is a borrower, it makes the current $HEX tokens scarcer since $HEX are staked in the Hex One protocol. ## Liquidations enable bidding (OTC) Due to how the liquidations auctions work, attentive bidders may acquire hex at the cheap, outside the market (much like an OTC desk), which does not affect HEX's market price. Fantastic opportunity! ## HEX is locked in Liquidity Pools, forever All tokens sacrificed are converted into $HEX at the end of the sacrifice period, and 25% of the sacrifice funds go into liquidity. This means, 25% of sacrificed $HEX will be locked forever. ## HEX buys back and burns HEX1 Every time there is a loan, 1% of the total HEX deposited is used to buy back and burn HEX1 from the available liquidity pool. ## $HEX is paired to $HEX1 The most important feature of $HEX1 remains its parity to HEX. Essentially, every $HEX1 is backed by a future HEX payout, hence each stablecoin token is worth a number of HEX tokens. Due to HEX's inherent pumpamentals, the likelihood $HEX1 will accrue value and hold its peg in the long-term is much, much higher than a significant number of stablecoins. ## If De-peg, you buy Hex at a discount if there is a de-peg between $HEX1 and other stablecoins, like $DAI, this means you can buy the underlying token - $HEX - at a discount, directly proportional to the difference in the peg. If $HEX1 loses 1% vs USDC, you are buying Hex with a 1% discount. If $HEX1 loses 50% vs DAI, you are buying Hex with a 50% discount. ## Liquidations keep the peg afloat Even if the price of HEX significantly drops, liquidations will increase the likelihood someone is willing to repay borrowed HEX1 to claim a future, juicy HEX stake. The further the drop, the greater the discount. ## Claim Hedron and Com tokens Once the orginal HEX stake matures you must claim the tokens by repaying the loan, and burning HEX1. This process also claims $HDRN and $COM automatically to the user. --- # 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/tokenomics/pumpamentals.md?ask= ``` 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.