Vault

A vault represents a pool of tokens locked in a contract.

TLDR: Vault locks T-SHARES, in the form of HEX. The reserve is at least 100%, but likely higher due to T-SHARES yield.

What is a Vault?

Vaults are categorized by the type of collateral that can be added to mint $HEX1.

A Hex One vault is characterized by accepting HEX. There is more than one vault that can mint $HEX1, and all are based on T-SHARES.

In the current version, you can only deposit $HEX that is transformed into T-Shares.

How do Vaults work?

Users create $HEX1 by depositing Hex tokens that are transformed into T-Shares by the Hex One Protocol.

To redeem the original Hex deposit, the borrower must repay the total borrowed $HEX1 tokens.

What is collateral?

Collateral are the T-shares, or staked HEX tokens, that go into the vault.