RFP Idea: Propose Collateral Support for HAY from Helio Protocol (BNB)

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Abstract
Helio Protocol proposes to have our decentralized stablecoin, HAY, listed as one of Radiant Capital’s collateral assets on the BNBChain.

Motivation

HAY is the leading original decentralized stablecoin built on the BNB chain, with a TVL of ($60+M) and market cap of ($20+M), issued by Helio Protocol. We are impressed with Radiant Capital’s innovative mechanism and promising roadmap, and we believe listing HAY as a collateral can benefit both our communities.

With approximately $20M HAY circulated on BNB chain, and a $44M max supply (subject to minor and dynamic adjustments based on market conditions), we believe there is still a lot of space for growth and utility to be built on top of HAY. We are keen to collaborate with protocols with strong potential to bring mutual benefits to one another. With Radiant Capital already becoming the top lending protocol on Arbitrum and the second on BNB chain in terms of TVL with cross-chain features, adding HAY as a collateral asset will bring more liquidity to Radiant Capital and further boost the growth of Radiant, specifically on BNB chain.

Rationale

Benefits to Radiant Capital users and liquidity providers

As the leading original decentralized stablecoin built on the BNB chain, adding HAY as the collateral asset will help in diversifying Radiant Capital’s collateral assets portfolio, attracting a larger group of users who prefers decentralized stablecoins (especially after the incident of BUSD and USDC), further boosting the TVL on Radiant. Currently, there are no decentralized stablecoin options available as a collateral asset for Radiant Capital on the BNB chain. Adding HAY as the first decentralized stablecoin collateral can give users more options and potentially help Radiant expand their user base and community on the BNB chain. Considering HAY’s current position and the community size of Helio Protocol (over 250k+), adding HAY as a decentralized stablecoin collateral into Radiant Capital’s ecosystem is a great choice that can attract the attention of this large community.

In addition, the fact that Radiant Capital has a general consensus of 80% minimum LTV ratio for borrowing against stablecoin, on top of HAY’s minimum 66% LTV ratio when borrowing against BNB(current collateral ratio of >300%), HAY is essentially double collateralised, making HAY an even safer option to borrow against.

Moreover, we’re eager to explore extensive collaborations with Radiant Capital and create more possibilities for both sides. For instance, we already have several liquidity pools launched on the major DEXs of BNB chain, including Pancakeswap, Thena, Wombat, and many others. We are also in the midst of discussion with Biswap. We would be more than happy to open a HAY/RDNT pool with competitive APRs for LP providers, offering further profitable yield opportunities.

We look forward to building a long-term and strategic partnership with Radiant Capital, and listing HAY on the BNB chain as a collateral asset is a solid first step.

About Helio Protocol

Helio Protocol is an open-source liquidity protocol for borrowing and earning yield on HAY–a new BNB-backed over-collateralized “destablecoin” –with “de” standing for “decentralized”. The protocol aims to position HAY as the leading decentralized destablecoin protocol in the BNB Chain ecosystem by leveraging Proof-of-Stake (PoS) rewards, liquid staking, and yield-bearing assets. Helio Protocol will operate as a DAO, where the community will govern the protocol’s treasury, revenue pool, and future direction.

In less than 9 months, Helio Protocol has gained 250K+ community members. Our partners include leading projects on the BNB chain, such as Pancake Swap, Wombat Exchange, Trust Wallet, Coin 98, Thena.fi, Ellipsis Finance, FRAX etc.

Our contracts have been successfully audited with CertiK, Peckshield, Slowmist, and Veridise. We also have a Bug Bounty Program of up to $500k budget on Immunefi.

About HAY

HAY is a native BEP-20 token, a decentralized stablecoin that is over-collateralized with liquid-staked assets, where 1 HAY is always redeemable at $1USD worth of cryptocurrency and over-collateralized by BNB. Users can mint and borrow HAY by providing BNB or BUSD as collateral, which can then be used to stake for yield, liquidity mining, and a means to transfer value. HAY has become the top decentralized stablecoins on the BNB chain in terms of market cap and TVL.

with a current collateral ratio of more than 3:1, we can weather extreme volatile market movements, and still remain fully collateralized 1:1. Additionally, other than BTC & ETH, BNB has one of, if not the deepest liquidity compared to other crypto assets out there in the market.

The fact that Helio protocol’s yields come mainly from liquid staking rewards, which are automatically converted into HAY rewards & distributed out to HAY stakers/ LP providers, allows us to offer a 0% borrow interest rate & still be profitable in the long run.

Key Terms
To encourage more HAY holders to deposit HAY on Radiant Capital as collateral once HAY is listed on Radiant Capital, we will provide $8,000 in HAY as incentives to further boost the deposit APY of HAY ($5,000 in HAY for the first four weeks and $3,000 in HAY for the subsequent four weeks).

Specifications
HAY’s price feeds are available on Binance Oracle
Feed Adapter Address: 0xc02780d15b021fd2574a331982753fb5de542cc5
HAY is a native BEP-20 token
Token Address: 0x0782b6d8c4551B9760e74c0545a9bCD90bdc41E5

Steps to Implement

  • List HAY as collateral asset on Radiant Capital of the BNB chain

  • Helio to provide $8,000 in HAY as the incentive rewards for depositing HAY

  • Create RDNT/HAY liquidity pools on Thena, Pancakeswap or Biswap and co-incentivize the pools.

  • Co-market to inform the communities about the partnership and further boost communities’ involvement.

Timeline

  • Within two weeks of HAY getting added as collateral asset, Helio will provide the incentive awards.

  • Within one month, if approved by the Radiant Capita community, Helio will open RDNT/HAY liquidity pools on major DEXs of the BNB chain.

  • Once HAY is listed on Radiant Capital, Helio will announce the partnership and initiate co-marketing efforts, which will last at least 8 weeks.

**Overall Cost **
$8,000 for incentive rewards, covered by Helio Protocol.

2

More collateral is great, although it seems like there are more important collateral assets to add first, which would be more likely to increase fees.

  • CAKE
  • ADA
  • DOGE
  • LINK
  • etc.

I’d vote yes out of principle and a good risk/reward ratio. But it seems like given how busy the team is, we should focus on listing more collateralls and not spend energy on relatively small partnerships like this one. And if $8k is all they’re committing to this partnership (and we need to fork out incentives as well), there’s not as much in it for us.

My 2 cents.

4 Likes
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I would be very careful about listing coins with very low liquidity and high centralisation risks (due to few holders having a majority share). It could easily destabilise the platform during highly volatile situations.

If we want to add more collateral I would focus on the well established and highly liquid ones first, as Speggos suggested.

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4

I agree with @Cryptox. We should avoid becoming a landing zone for relatively unknown and underfunded projects. BNB chain generally does not have the best history for quality projects, so we should tread very carefully here. I prefer to keep a high standard for qualification and lean towards Arbitrum when in doubt.

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5

I don’t like the idea of synthetic stabelcoins as collateral for loans. It is an additional risk for the whole protocol, depending on external protocols code and security. To accept it, you need a special protection mechanism that will not allow to make a large debt there will be manipulation of the collateral price.

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agreed. Wrapped XRP to take advantage if the impending conclusion to the XRP case!

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7

I would be completely against it. There is a huge risk on using low liquidity colaterals as shown on dozens of exploits from other lending platforms. We dont need this sor. Sorry.

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8

Against doing anything on BSC I wish we weren’t on that chain. I don’t trust them not even a little bit

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9

Extremely against. Collaterals should provide a real advantage for the protocol, have a very high liquidity; there are literally hundreds of coins that are better than this one

Moreover, there are things where devs should focus way more. First of all - omnichain. Second - more chains. Adding a minor (to be polite) coin with no usage can’t be on my list

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10

Well, it is best to have criteria for new collateral listing. Having a low liquidity asset will be dangerous to the protocol due to so many recent hacks on lending and borrowing protocol, best to be late than sorry, just focus on deploying radiant to ethereum main net pls.

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12

please no shitcoin or low liquidity asset! if you do, I prefer to leave the protocol

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13

Listen, I agree with what you’re saying about being cautious when it comes to listing coins with low liquidity and high centralisation risks. We don’t want to put our platform in a vulnerable position, especially during volatile times.

Now, as for adding more collateral, I think we should definitely focus on the well-established and highly liquid ones first. That’s just common sense. Speggos knows what he’s talking about. We need to make sure we’re making smart choices.

But let me tell you something, we need to take it a step further. We need to create some kind of rule, a guideline, for what assets we consider for listing on Radiant. And I have a suggestion. How about we only consider assets that are in the top 100 on cmc and/or coingecko? That way, we can be sure we’re listing assets that have proven themselves to be reliable and have a strong following.

This is important stuff, folks. We need to be strategic and careful about the assets we list on Radiant. We’re building something big here, and we need to make sure we’re doing it right. Let’s make this happen.

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14

I think even the top 100 can be risky. Look at the manipulation that occurred with AVAX on GMX in December. A large whale was able to move AVAX between CEX and GMX. It should be more like top 20 or top 10. This is very important to us longs in RDNT.

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Thank you all for the attention and comments for our proposal.

We agree that comparing to the major assets, our liquidity is still relatively low, but lower liquidity also means lower risk of losing large amounts. If our pool is relatively smaller comparing to the other assets that listed on Radiant Capital, in the worst case scenario, even if we get exploited, the loss is still very little comparing to other pools on Radiant Capital.

In fact, security is always our first priority, we have done 5 audit reports with PeckShield, Certik, Slowmist and Veridise. So even the risk of exploits is low.

We are also open to set a maximum cap of how much HAY can be borrowed on Radiant Capital.

Actually, our liquidity is low because our min collateral ratio is relatively high, as 66.66%. But because our min collateral ratio is high, it makes us safer as well to account for volatile market conditions. In fact, we even set a maximum minting cap for HAY to “avoid” growing too quickly. Because it is to ensure we are properly collateralised.

Besides, we just migrate 3.5M liquidity from HAY single staking to HAY/USDT/USDC and HAY/FRAX/CUSD/USD+/USDT+/USDC pools on Wombat Exchange ( the biggest stable swap on BNB chain), which makes our liquidity on the market even deeper than before, and we will continue doing so in the upcoming weeks.

Additionally, we use BNB as collateral, which has deepest liquidity on BNB chain and also help us to mitigate the risk and to ensure that HAY’s TVL growth doesn’t outgrow the growth of our BNB collateral.

Hope my 2 cents make sense for you.

1 Like