- Project: Hedge
- Date & Time: 8:30pm (UTC+7), Sep 12, 2022
- Host: Socola from Saros Finance
- Guest: Seb from Hedge Labs
- Venue: saros.link/discord
⚡️Section 1: Warm-up | The project Introduction
⚡️Section 2: 5 Open-Ended Questions
⚡️Section 3: Live Questions from Community (10 HDG for 5 best questions)
⚡️Section 4: Quiz time (10 quizzes, top 10 winners will get 5 HDG)
Section 1: Warm-up | The project Introduction
- Please briefly introduce yourself
Hey! I'm Seb, one of the people building Hedge. I used to work at Google and coded Hedge during the Ignition Hackathon where I won a prize so decided to leave to start Hedge!
- So how big is your team at the moment?
We are currently 4 full-time people along with 4 other part time people! We're a pretty technical team since everyone is on the engineering and product side right now and we're always looking to hire more!
Section 2: 5 Open-Ended Questions
1. Can you briefly explain Hedge to us. What is Hedge Protocol in general, and what issues does the team want to solve?
Hedge is a protocol that allows users to leverage various assets with a more predictable cost than other leverage paradigms (such as perps) since we offer fixed interest rate or interest free leverage options. Perps for examples will have changing funding fees which can reach up to 100% APR equivalent.
Hedge achieves this by minting a stablecoin (USH) against various collateral. Users are able to use this stablecoin to buy more of the provided collateral to multiply their exposure to the underlying asset. Alternatively users can use it to take a loan out to get access to liquidity.
tldr: Hedge allows users to mint USH against assets such as SOL, BTC, ETH and cUSDC with more collateral coming soon. The HDG token can be staked to earn USH (protocol revenue)
2. Why should users choose Hedge over other protocols in the same category?
Hedge allows leverage on classical assets such as SOL, ETH and BTC but more importantly offers more advanced leverage strategies such as yield leverage (Solend cUSDC) with more yield bearing assets coming soon. This focus on yield bearing assets is why users should consider Hedge for more advanced strategies.
Also various Hedge vaults come with features not seen in other protocols. For example Hedge offers the lowest min collateral ratio (110%) for borrowing against SOL across the Solana ecosystem - though users will need to be aware that very low collateral ratio vaults have a recovery mode. You can read more about it in our docs!
Also some of our vaults are interest free (0% interest) so are a good option for long term leverage! We encourage you to check them out!
Currently users are able to leverage up to 20x the 4% yield on Solend USDC - resulting in ~80% APR profit. We're launching USDT soon pending some more tests.
3. Can you share more about the Hedge Referral Program?
Yes, anyone with 500 HDG is able to create a referral link they can share with friends. Any fees Hedge makes as a result of this will let the referrer earn 20% of the setup fees of users they brought to Hedge! Simply create a referral link at hedge.so/referral
Also if you own a referral link you get a discount on your own setup fees which is pretty cool!
4. As we know most of the lending protocols make their revenue based on the interest rate, where does your project draw revenue from when you have 0% interest vault? Is it sustainable?
We have init fees and some of our strategies have interest rate (For example our cUSDC vault is currently as 1.25% interest). Our protocol makes revenue by taking fees there. This revenue is fully distributed to stakers of the HDG token. (You can stake your HDG tokens to earn this revenue if you want to participate btw!)
5. HDG-USDC trading competition has just been launched on Saros. Can you share more about this event?
Of course! In partnership with Saros, 5000 HDG are being given out to the most active traders of HDG. Traders will need to trade on the Saros DEX to be eligible for a reward. Also if you have some HDG staking is likely a good idea!
(Mid-Autumn HDG Trading Competition: https://saros.link/hdg-trading-competition)
Section 3: Live Questions from Community (10 HDG for 5 best questions)
1. Has the Hedge protocol been audited to ensure that funds are SAFU? (From @CapricAnna#6922)
We've actually had 3 different audits. OtterSec, Kudelski and Sec3 have audited us. We encourage everyone to check out more at https://docs.hedge.so/protocol-overview/security to see the reports!
2. In Hedge Protocol, what is the difference between $USH and $HDG tokens? How does it work in the platform and what is the use case for USH and HDG tokens? (From @FeMMie#8084)
USH is a stablecoin that is meant to be traded as close as possible to $1 and is used for users to leverage their position.
HDG is our protocol token that is used to collect protocol revenue
3. UST has bad issue on stablecoin. What will you do to secure your project? (From @BrightWin#6163)
USH is an overcollateralised stablecoin rather than an algorithmic one. Overcollateralised stables like DAI have survived the test of time very well as opposed to algorithmic ones like UST. So we're very confident in this design.
4. Who or what factors determine the percentage of interest stipulated on each asset that is to be repaid? What is the duration required for each acquired loan to be repaid? Is there liquidation ratio? (From @$darien⚠️#2481)
For cUSDC vault the interest charges is usually a cut of the Solend interest rest. (Usually 30-40%). Loans can be left open for as long as you want them to.
Liquidation ratio varies on different vaults. For SOL it is 110%!
5. With regards to your white paper you operate a 0% interest rate. The only way the system benefits is through fees? Also can you shed more light on the redemption mechanism and recovery mode of hedge fund? (From @IvarTheBoneless#5778)
Yes - the interest free vaults have a 0.5% setup fee instead.
Redemption is what allows USH to be redeemed for 1 USD should USH fall below peg to ensure 1:1 for USH.
Recovery mode ensures that some vaults backed by volatile assets have a 150% ratio even if they offer some users to open lower ratio positions.
Section 4: Quiz time (10 quizzes, top 10 winners will get 5 HDG)
1. What is one of Hedge Protocol's current functions?
b. Decentralized exchange
d. Defi tracking tool
2. The interest rate of Hedge cUSDC vault is...
3. "What is the ticker symbol for Hedge governance token?
4. What is the ticker symbol for Hedge stablecoin?
5. What is the current list of accepted collaterals on Hedge?
6. What activity on Saros is Hedge not yet featured?
a. Trading Competition
b. Farming Pool
c. NFT minting
d. Staking Pool
7. What is the required pair for the trading competition?
8. "When will the HDG Trading Competition begin?
a. September 9th, 2022
b. September 10th, 2022
c. September 11th, 2022
d. September 12th, 2022
9. What is the total prize pool of the HDG Trading Competition?
a. 1,000 USDC
b. 5,000 USH
c. 5,000 HDG
d. 1,000 USH"
10. With Hedge Referral Program, you will get ... of your referrals' loan initiation fees.
10 Quiz Winners
@BrightWin#6163; @Sirbalan#2666; @Ken_Dee#5492; @LEV#8320; @saint_moritzz#7428; @wahyuhardeka#1708; @Bert#6051; @Nalaka Udayakumara#8698; @ivanstena#8382; @다음 기회에#4363
5 Lucky Winners on Twitters
@dipupo7733; @de_ka_; @Ken_ol4lyf; @RazaTrade; @spanser77
About Saros Finance
Saros Finance is the ultimate DeFi platform native to Solana, with trading, staking, and yield farming services. Built by Coin98 Labs, Saros Finance aims to adopt millions of users to DeFi.