Decentralized Finance (DeFi) is an interesting aspect of the blockchain industry and the financial industry. The possibility of having financial transactions quickly and across borders to boycotting so much red tape and costs is a phenomenon that only became possible a little over a decade ago when Bitcoin came into use.
Since then, there have been thousands of altcoins stepping into the DeFi sector and picking up the mantle. Crypto enthusiasts will know popular ones like Solana (SOL) and Binance Coin (BNB). However, a new project – HypaSwap (HYPA) is about to step into the light and possibly take over from them.
Introducing The Next Potential 1000x DeFi Coin; HypaSwap (HYPA)
HypaSwap is a decentralized non-custodial liquidity protocol, one of several DeFi systems designed on the Ethereum blockchain, that allows lenders and borrowers to trade assets through a liquidity pool. In contrast to the borrowers, who borrow assets from the liquidity pool in return for collateral, lenders receive interest on the assets they lend to the HypaSwap.
Given that HypaSwap’s primary business is lending and borrowing, the platform has developed a reliable mechanism to conduct these transactions without running the risk of losing money to fraud or bad loans. The loan must be overcollateralized by the borrowers, and in all cases, the interest rate is how the lenders are compensated.
HypaSwap (HYPA) will be managed by a Decentralized Autonomous Organization (DAO) made up of community members and the HypaSwap Genesis Team. These individuals will be in charge of deliberating, making, and putting those decisions into effect throughout the platforms.
The HypaSwap Ecosystem
The HypaSwap protocol allows users to lend their assets to build a liquidity pool made up of several cryptocurrencies, including ETH and BNB. Every transaction results in the creation of a derivative with a 1:1 valuation that may be saved, exchanged, or redeemed.
This implies that the value of the derivative token is still free even while the underlying asset is still locked in the liquidity pool.
The owner of the derivative token, also called fToken, receives ownership of the loaned sum once the token is sold.
Borrowers withdraw funds from the liquidity pool in return for security when they borrow money. The collateral is released when the sum and interest have been paid. Contrary to centralized banking, the collateral must be significantly more valuable than the sum being borrowed. The needed amount for HypaSwap is equal to 150% of the borrowed amount.
Thus, the borrower must pledge 150 ETH as security for every 100 ETH borrowed. The collateral is liquidated and dispersed among the lenders if the borrower defaults on the loan.
If the value of the collateralized asset falls below 150% of the borrowed amount in the event of price volatility, the collateral is liquidated and split among the lenders.
- Liquidity Pool
A liquidity protocol focuses on the liquidity pool as its focal point. The liquidity pool, which powers the entire corporate activity of lending and borrowing, is filled with a variety of assets. Lenders contribute funds to the pool in exchange for fTokens, while borrowers withdraw funds in return for collateral.
A decentralized liquidity protocol’s efficiency and profitability are reflected in the condition of the liquidity pool. The whole protocol is regarded as legitimate and lucrative if there is a good balance between the quantity of liquidity borrowed and lent. Users have access to the HypaSwap ecosystem’s liquidity pool via which they may lend or borrow money.
The HypaSwap token’s ticker symbol is HYPA and it is an ERC-20 token on the Ethereum blockchain. There will be a total maximum supply of 200 million which will be distributed as follows;
Advisors – 10 Million (05%)
Liquidity – 30 Million (15%)
Public Presale – 90 Million (45%)
Founders & Team – 30 Million (15%)
Community Reserve – 40 Million (20%)
There will be at least a 2-month vesting period for everyone.
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