Hector Finance Launches Its Much Anticipated TOR Stablecoin Farm

(MENAFN- Newsfile Corp) Hector Finance Launches Its Much Anticipated TOR Stablecoin Farm

Bristol, United Kingdom--(Newsfile Corp. - February 18, 2022) - Hector Finance, a developing financial center on the Fantom Opera Chain has launched the much-awaited farming pool for its stablecoin project TOR with which users can enjoy rewards of more than 30% APR. The TOR stablecoin works similarly to Terra's UST: users can mint TOR with DAI or USDC, which then burns Hector Finance's underlying HEC tokens on the open market, thus as TOR grows, so does HEC. Hector Finance can increase its treasury reserves and invest more in yield-bearing products as the HEC ecosystem grows, allowing for more TOR awards and more growth for the HEC token. This establishes a cyclical feedback loop in which both tokens assist each other's growth.

Hector Finance Launches TOR

To view an enhanced version of this graphic, please visit:

Users are essentially paid a commission for helping to keep TOR's price at $1. When the price of TOR exceeds the $1 peg, users can mint TOR for $1 per token and then sell it for a profit, lowering its price until the peg is restored. When the price of TOR falls below the $1 peg, users can buy TOR from the TOR Curve pool for less than $1 per token and subsequently redeem each token for $1 worth of HEC tokens. As a result, arbitrage traders can make a tiny profit by keeping the peg in place. A portion of Hector Finance's $90 million+ treasury can also be used to help maintain the peg if needed.

The Hector Finance team is now focusing on bringing as many use cases to the TOR token as possible in order to progressively increase demand and usage. TOR has already been integrated into MyCryptoCheckout, a payment gateway that allows e-commerce store owners to accept cryptocurrency payments through WooCommerce, one of the world's largest e-commerce platforms, allowing TOR to be used for payment on stores such as Orange Guitar Amps, New Zealand All Blacks, Singer, and many others.

This is a significant step forward in bridging the worlds of cryptocurrency and traditional finance, and one that will undoubtedly pave the way for future growth. Hector Finance is also running a marketing initiative to encourage adoption: Hector Finance will contribute $1,000 to charity for the first ten partners who integrate TOR into their service. The gains from Hector Finance Treasury Investments and HEC's emission plan will generate the yield. Hector Finance aims to provide an APY of at least 20%, making TOR yield farms competitive in the market and providing the most consistent yield farming on the FTM chain.

How does TOR stablecoin Function?

TOR is a new ERC20 coin that can only be obtained by burning HEC with DAI or USDC. The HEC pricing oracle, built with Time Weighted Average Price, can be used to swap TOR for newly minted HEC (redeemed) (TWAP). Oracles are an important part of any stablecoin's base functionality. In the context of blockchain technology, an oracle is a mechanism designed to supply data to smart contracts. In general, a Stablecoin is only valued and trusted if its price remains constant. The price of TOR is $1. What kind of 'backing' does it have? TOR's backing is made up of two layers:

1. Smart-contract algorithms and the HEC/stable LP
2. Hector Finance Treasury

Hector (HEC) is the counterpart to the TOR Stablecoin . By modulating supply, Hector's price increases as the demand for TOR increases. The primary mechanism for keeping pegs in place is expansion and contraction (layer 1). TOR's stability is ensured via a simple swap mechanism: at any time, 1 TOR can be switched for 1 dollar's worth of HEC. If the value of TOR falls below $1.00, buyers can purchase it and use the method to redeem it for $1.00, allowing them to profit. Demand for TOR rises when buyers do so, causing the price to rise again until it reaches $1 USD. These financial incentives function quickly to keep TOR stable. Since the protocol owns the majority of HEC/DAI, HEC/USDC, and HEC/frax, sufficient liquidity is ensured when a TOR redeem operation occurs. To ensure that the redeeming procedure is effective, all protocol-regulated HEC/stable LP is present.

Despite the existence of a curve pool as 'Layer 0' for shifting TOR back and forth, the project still needs to mint/redeem on a much less frequent basis. The price of HEC will (slightly) increase or drop as a result of the mint/redeem at Layer 1. Although the price of HEC has no impact on the minting/redeeming of TOR in Layer 1, if the price of HEC drops more than expected/wanted, the Hector Finance treasury will be used to stabilize the value of HEC through buybacks and burns.

Hector Finance revealed plans to convert HEC into a rebasing token with a shrinking supply in late 2021. It would be the first deflationary rebase token in the world as a result of this. Since January 26th, the HEC cryptocurrency has been deflationary, with almost 210,000 tokens worth $4,200,000 burned. This will be an amazing year for the project and community if Hector Finance's progress in 2022 is any indication. The company plans to keep HEC deflationary by leveraging revenue from a variety of 'subprojects' to buy and burn market tokens, soaking up the extra tokens generated by HEC APY incentives. This would create an indirect profit-sharing model in which HEC token holders can share the advantages of the entire Hector Ecosystem through a rebasing token that is not only environmentally friendly but also has a limited supply.

To know more about TOR visit

Twitter:
Telegram:
Reddit:
Youtube:
Instagram:
Medium:
Discord:
Github:
TikTok:
Buy HEC on Fantom:
Buy HEC on FTMScan:

Media Contact:

Contact Person: Henry Davis
Company Name: Hector Finance
Email:
City: Bristol
Country: United Kingdom
Website:

Source: Hector Finance

To view the source version of this press release, please visit

MENAFN18022022004218003983ID1103724479