Struggling to understand everything about @HatomProtocol?

Here's your ultimate alpha-packed guide to mastering the protocol in record time!

@pulsarmoney send 500000 MEX to the first 300 retweets.

🧵 👇

Let me clarify a few things before we start!

@HatomProtocol is not a DEX!

Depositing funds into the protocol doesn't posses any risk to IL.

You won't find farms inside the protocol.

@HatomProtocol is a lending and borrowing protocol and liquid staking provider.

What's this?

🔹𝗟𝗲𝗻𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗯𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴 𝗽𝗿𝗼𝘁𝗼𝗰𝗼𝗹

Lending protocols operate by employing smart contracts that automatically oversee and carry out loan contracts.

These smart contracts make it possible for users to directly lend to and borrow from each other.

Lenders place their assets into the protocol and these assets can subsequently be borrowed by other users.

In order to borrow, these users must provide collateral, more than the amount they are borrowing, as a safeguard against possible price fluctuations.

Lenders are getting paid to supply their funds in @HatomProtocol pools; the interest comes from the borrowers.

Borrowers are paying to borrow funds from these pools; most of the interest is paid to lenders, while @HatomProtocol takes a part of that interest.

Quite simple,right?

The interest rate it's not fixed and it changes based on the utilization rate inside the lending protocol.

Here is an explanation of how the interest rates are working 👇

https://twitter.com/robolteanu/status/1684221197943451648

Similar lending and borrowing protocols on other chains?

➼ @AaveAave ( multi-chain )

➼ @compoundfinance  ( multi-chain )

➼ @VenusProtocol ( BSC )

➼ @BenqiFinance ( @avax )

🔹 𝗟𝗶𝗾𝘂𝗶𝗱 𝗦𝘁𝗮𝗸𝗶𝗻𝗴 𝗣𝗿𝗼𝘃𝗶𝗱𝗲𝗿

@HatomProtocol provides a solution for traditional staking where a user needs to lock funds to secure the network and receive additional rewards.

The problem is that once they are locked, the user has no access to those funds.

By using liquid staking, a user can participate in securing the network while maintaining liquidity.

This is made possible by providing the user a receipt token when he proceeds to stake the funds.

In this case, when a user stakes $EGLD, he will receive $sEGLD in exchange.

$sEGLD is an interest-bearing token that grows in value based on the staking rewards.

Basically, the rewards are injected back into the $sEGLD and its price will always be higher than $EGLD.

The value of  $sEGLD increases algorithmically based on the liquid staking APY.

Here are the two modules that you must understand.

It's simpler than it looks and you can imagine it this way :

➼ Lending Protocol = a bank where users can lend and borrow;

➼ Liquid Staking Module = maintain liquidity while earning staking interest.

While using @HatomProtocol you will come across another token, namely $HsEGLD.

What you need to know there is that when you supply a token inside the lending protocol, you also receive a receipt token ( HTokens ).

As the name shows, $HsEGLD is $sEGLD supplied in the protocol.

This token will earn interest from both staking and supply.

Here is a more in-depth explanation of both $sEGLD and $HsEGLD 👇

https://twitter.com/robolteanu/status/1676906624546471936

Similar protocols that are offering liquid staking on other chains?

➼ @LidoFinance ( multi-chain )

➼ @Rocket_Pool ( $ETH )

➼ @MarinadeFinance ( $SOL )

➼ @stride_zone ( $ATOM )

Now, let's move to the most interesting part.

How do you make money with @HatomProtocol?

It's actually easy and it doesn't possess any risk other than smart contract risk ( well, it's DeFi, that's the norm ).

So let's delve into different ways to make some profit!

1️⃣. 𝗦𝘁𝗮𝗸𝗲 $𝗘𝗚𝗟𝗗 𝗶𝗻 𝘁𝗵𝗲 𝗹𝗶𝗾𝘂𝗶𝗱 𝘀𝘁𝗮𝗸𝗶𝗻𝗴 𝗺𝗼𝗱𝘂𝗹𝗲

Yep, I know, it sounds easy; well, it is!

By supplying your $EGLD into liquid staking, you earn the staking APY ( 6.35% ) and you will receive $sEGLD which can be used in other DeFi strategies.

How do you do that?

Extremely simple, just a few clicks!

First, head over to this link: https://app.hatom.com/liquid

Now, follow this video 👇 ( I'm using devnet, not important ).

𝗔𝗿𝗲 𝘁𝗵𝗲𝗿𝗲 𝗮𝗻𝘆 𝗿𝗶𝘀𝗸𝘀?

As I said above, there is a risk of smart contracts being hacked.

Can this really happen?

Sure, but the team spend over $2m for multiple audits and penetration tests.

And guess what?

It's actually the most audited protocol on #MultiversX.

 2️⃣. 𝗦𝘂𝗽𝗽𝗹𝘆 𝗔𝘀𝘀𝗲𝘁𝘀 𝘁𝗼 𝘁𝗵𝗲 𝗟𝗲𝗻𝗱𝗶𝗻𝗴 𝗣𝗿𝗼𝘁𝗼𝗰𝗼𝗹

That's the beauty of a lending protocol, you can earn yield without any kind of impermanent loss.

You are not creating an LP nor depositing into a farm.

You simply supply and receive yield.

𝗞𝗲𝘆 𝗧𝗵𝗶𝗻𝗴𝘀 𝘁𝗼 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 🔑 🧠

➼ The APY that you see in there ( 10.45% on $EGLD, 10.60% on $USDC, and so on ) is received only if you activate your tokens as collateral.

Don't worry, I will explain to you later what collateral means.

How do you activate your assets as collateral?

It's super simple.

This video should help you!

You can do the same interaction with any of your coins in order to receive the displayed APY.

If you don't activate your assets as collateral, you will only earn supply interest that comes from people that are borrowing the funds.

This APY is calculated based on the utilization rates inside the protocol.

A higher utilization rate will translate in higher APY.

As you can see, a Net APY of 10.46% on $EGLD consists of 2.78% supply APY paid by borrowers + 7.685% APY paid by Hatom itself in additional rewards.

Wait a minute, where are the rewards coming from?

➼ Rewards Are Not Printed From Thin Air

@HatomProtocol is offering $3m in incentives for an entire year.

Read more about it here 👇

https://twitter.com/HatomProtocol/status/1676531570230849539

The rewards are not distributed in $HTM, therefore there is no liquidity mining program for $HTM

All the additional rewards are being distributed in $USDC at the moment

No impermanent loss, no farming, no selling pressure, nada!

Just supply!

➼ You can't be liquidated if you don't take a loan ( will cover this immediately ).

Liquidation occurs only when you take a loan against your collateral.

If you simply activate your assets as collateral without taking a loan, you are not subject to liquidation, period!

𝗔𝗿𝗲 𝘁𝗵𝗲𝗿𝗲 𝗮𝗻𝘆 𝗿𝗶𝘀𝗸𝘀?

Same as liquid staking, only smart contract risk.

But what if all the assets will be borrowed from the protocol and I can't withdraw my assets?

You need to understand that a protocol like @HatomProtocol is using over-collateralized loans.

Over-collateralized loans are loans in which the value of the collateral that the borrower pledges is greater than the amount of money they're borrowing.

For example, if someone wants to borrow $80, they might have to provide collateral worth $100.

When the utilization rate of the funds is high, the increase in APY will force the borrowers to pay the funds.

The APY for supply will also be high and will incentivize users to take advantage of the rates and supply more.

The system is designed to always reach an equilibrium.

3️⃣. 𝗠𝗮𝗸𝗲 𝗣𝗿𝗼𝗳𝗶𝘁 𝗧𝗵𝗿𝗼𝘂𝗴𝗵 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀

The above steps are mostly risk-free, as I already mentioned.

I already posted a few strategies for the community, so we will just include them here again.

These are a bit more risky tho.

➼ Trade the Price Movement of an Asset

Here's a guide on how to open long and short positions using @HatomProtocol.

Please make sure you understand the risks, if the price goes against you, then you will be in a position to be liquidated.

https://twitter.com/robolteanu/status/1678458119922536448

➼ Leveraged Liquid Staking

Here you can amplify the APY that you receive through a strategy called looping.

It can be an effective strategy if used correctly.

Please make sure you understand how the borrowing APY works first and what you need to be monitor.

https://twitter.com/robolteanu/status/1679084597953417218

If you decide to loop using $sEGLD, make sure you understand how the interest works for this $EGLD derivative.

I gave a brief explanation of it here 👇

https://twitter.com/robolteanu/status/1682704799647539201

3. Self-Repaying Loans

This is an interesting concept and it can be very lucrative.

Find out more about it here 👇

https://twitter.com/robolteanu/status/1680183958816931840

@Davyegld also worked on it and explained a few strategies when it comes to @HatomProtocol.

Feel free to have a look at them 👇

https://twitter.com/Davyegld/status/1679876900020441090

@AndreiMX_ made everything look better through an infographic.

For whoever likes to learn through visuals, here is your thread 👇

https://twitter.com/AndreiMX_/status/1679884570877992962

Some of these strategies will be subject to liquidation, as I said countless times.

I would advise you to learn how liquidation works first.

I've explained it here 👇

https://twitter.com/robolteanu/status/1677648426249379840

@HatomProtocol it's powerful and at the moment, quite possible that it's the best place to go and earn some interest on your assets with almost no risk.

Unfortunately, I saw that some members of the community are not really aware of what Hatom is, but here you have it now.

This thread should be enough to get you started and earn additional rewards.

There's no sketchy game, and no hidden fees, it's just a way to bootstrap the DeFi ecosystem.

It's a long thread, so thanks for reading.

This should help you understand how everything works, but if something is not clear, feel free to send me a DM.

You should all take part in this, there's nothing to be afraid.

Top-notch security and good incentives.

That's it for now, play it safe!

Don't go too crazy, feel free to leave suggestions if you want me to explain something.

Have a good one, lads! 👋

You can read the unrolled version of this thread here: https://typefully.com/robolteanu/nJgD5Gv

Mastering @HatomProtocol: The Ultimate Guide

Get ready to discover how @HatomProtocol wants to upgrade the DeFI experience on #MultiversX.

With the power of three innovative tokens - $sEGLD, $HsEGLD & $xEGLD - users can take their DeFi game to the next level.

But what are these tokens?

Let's find out 🧵


With the launch of their anticipated liquid staking feature, three new tokens will be born from the roots of the native $EGLD.

These tokens are set to revolutionize the DeFi landscape and offer users even more flexibility when it comes to staking and earning rewards.

If you are unfamiliar with @HatomProtocol and the idea of liquid staking, I encourage you to take the time to review my previous thread which covers the liquid staking feature that will be incorporated into @HatomProtocol upon launch.

https://twitter.com/robolteanu/status/1627666535841144832?s=20

Now that you have a better idea of this concept, let's delve into what these tokens are.

$EGLD will see three new derivatives coming alive on the blockchain :

➼ $sEGLD
➼ $HsEGLD
➼ $xEGLD

1️⃣. $sEGLD

$sEGLD is the liquid version of staked $EGLD.

It represents $EGLD plus the staking rewards accumulated and accrues interest following the Liquid Staking APR.

If the Liquid Staking APR is 10%, then after one year, the value of $sEGLD will have increased by 10%.

This means that if you have 100 $sEGLD at the beginning of the year, then at the end of the year, your 100 $sEGLD will be exchanged for 110 $EGLD.

Why would you exchange your $EGLD for $sEGLD? 👇

➼ Earn staking rewards without locking up your $EGLD 🔒💰

➼ Earn borrowing interest by supplying $sEGLD on lending protocols 💰💸

➼ Use $sEGLD in DeFi apps such as Automated Market Makers (AMM) and Lending Protocols 📈💹

➼ No need to choose between staking your $EGLD or supplying it to lending protocols 🙅‍♂️🙅‍♀️

In addition to receiving APR rewards from staking, you'll now have the chance to earn even more rewards by using your $sEGLD token.

By providing liquidity in other protocols or even trading NFT, you can accrue extra yield and maximize your earnings potential.

Game changer

2️⃣. $HsEGLD

$HsEGLD, or HatomStaked $EGLD, is a new derivative of $EGLD that provides users with an interest-bearing version of $sEGLD.

It is a receipt token that it's given to the user when $sEGLD it's supplied into the lending protocol.

What do you need to understand about $HsEGLD?

➼ $HsEGLD combines both the Staking Rewards that are received from validators and the Borrowing Interest that are earned when supplying assets on the Lending Protocol. 💰💸

➼ You can activate $HsEGLD as collateral and earn additional rewards if applied.

This means that you can use $HsEGLD as collateral to borrow other assets on the lending protocol, while still earning rewards on your $HsEGLD holdings. 💪

➼ By using HsEGLD as collateral, you can access borrowing capacity, which can be useful for leveraging your investments or accessing liquidity without selling your assets. 🚀

➼ sEGLD is an innovative product that allows EGLD holders to maximize their yield potential

⚠️⚠️⚠️ WARNING! ⚠️⚠️⚠️

Your capital will be at risk.

Providing collateral carries risks as it may result in losing the collateral if liquidation occurs.

It's important to have a clear understanding of all the concepts before utilizing any advanced strategies.

3️⃣. $xEGLD

While there is not much information about how this $xEGLD or maybe I don't understand myself exactly how it's working.

I'll have to ask any of you who understand the mechanism better to correct me if any of my statements are wrong.

$xEGLD is a leverage-bearing EGLD index that utilizes a leveraged liquid staking strategy.

By leveraged liquid staking strategy, I personally understand that a user will need to borrow $EGLD on the lending app by providing $sEGLD as collateral.


So what do you need to do to receive $xEGLD?

➼ Stake $EGLD tokens in a liquidity pool to receive $sEGLD 💰

 ➼ Supply $sEGLD tokens to a lending protocol to borrow more $EGLD 💸🌊

➼ Use the borrowed $EGLD to enter the leveraged liquid staking strategy and get $xEGLD.

From a discussion on Hatom Discord with one of the staff members, I was told that $EGLD provided for you in exchange for $xEGLD will be used in different strategies to gain extra yield.

Leveraging $EGLD to receive $xEGLD can increase your earnings by up to 28% annually.


@HatomProtocol will act as a bank for digitalized assets.

Like in traditional banks, @HatomProtocol will use users' money to create more liquidity for lending and borrowing.

You will now have the chance to become the bank.

With the liquidity protocol, users will have more power than ever.

You can now stake your assets and earn interest, while at the same time, you can lend the same assets for extra interest from borrowers.

That's the beauty of decentralization.

This is the second thread about @HatomProtocol.

There will be a few more in the upcoming days in which I will cover the lending platform, strategies that you can use for extra interest, and also other interesting features.

I hope that this thread helped you understand better the future derivatives of $EGLD which will appear in this ecosystem.

If you find it useful, please do two things :

1. Retweet this thread to spread the information.
2. Give me a follow at @robolteanu.

Take care! 🙌

A few days back, there was some curiosity in the #MultiversX community regarding the necessity of a protocol like @ash_swap and whether there was sufficient interest in it.

Allow me to describe a scenario in which @ash_swap would greatly profit if it were to come true.

🧵 👇

From an economic perspective, cryptocurrencies aim to provide an alternative to conventional financial systems, creating a more transparent and available financial framework

Imagine a scenario where in 10-20 years, the majority of countries shift their currency to the blockchain

At the moment, the daily turnover on Forex markets is 7.5 trillion.

 Yes, 7.5 trillion, a day.

What is Forex Market trading?

Correct, currencies.

If countries start using blockchain technology to support their currency in the future, where do you think people will be able to buy and sell these digital currencies?

One answer might be stable-swap dexes with deep liquidity pools such as @ash_swap.

Why stable-swap dexes?

‣ Low fees 💰

‣ High liquidity 💦

‣ Efficient trading 🚀

‣ User-friendly interface 👩‍💻

It will undoubtedly be difficult to compete with established players like @CurveFinance.

However, even if the protocol manages to capture a small portion of the daily trading volume (0.5% to 1%), the resulting revenue could still amount to billions of dollars.

While the interest might seem low at the moment, don't fade the opportunities that might be created with the future adoption of this technology.

We are still walking on unknown territories which could potentially turn into fields of gold.

Of course, that's only a scenario.

There is no certainty that any protocol will survive in the long term.

That's why it is imperative that you do your own research and create your own investment thesis.

Don't take this as investment advice, it is only my opinion.