Ever heard the saying “Don’t get high on your own supply”?
Well, HAI flips that on its head
Use LSTs & OP native assets as collateral to get HAI — a decentralized and overcollateralized stablecoin
Ready to get HAI? Let’s dive in
1/ Introduction to @letsgethai
Largest CDP protocol on #Optimism
Where you can deposit collateral like WETH, wstETH, rETH, OP, etc., and take a loan in HAI
Over 45% of TVL across all CDPs on OP is in HAI Vaults
2/ HAI An over-collateralized CDP-minted stablecoin
Has a diverse collateral base including LSDs & other tokens
Uses a floating peg, unlike USDC/USDT, which are hard pegged to the $
The peg is set by a Proportional-Integral-Derivative (PID) controller to induce stability
3/ HAI has two important prices
- Market Price (MP): What people are paying for HAI in the market
- Redemption Price (RP): What the HAI system believes HAI should be worth, initially $1
4/ HAI mechanics
The system uses a smart PI controller to adjust HAI’s value
If MP > RP
The system sets a negative interest rate, making it cheaper to owe HAI over time
This encourages selling HAI to stabilize the price
5/
If MP < RP
The system sets a positive interest rate, making it more expensive to owe HAI over time
This prompts buying HAI to pay off debts, pushing the price up
6/
These adjustments help keep HAI’s value close to $1, balancing supply and demand
Basically, HAI’s smart controller tweaks interest rates based on market conditions to keep its value stable
HAI is a multi-collateral fork of RAI @reflexerfinance with the same basic mechanics
7/ Simplified
The market price of HAI can’t deviate from the RP for too long due to smart incentives
- If the price is too high, people borrow and sell HAI
- If the price is too low, borrowers buy back HAI
This helps keep HAI’s value stable and in line with its target RP
8/
Ensuring that it remains a reliable and predictable stablecoin
Users must carefully manage HAI minting
If collateral value drops too much, it can be seized and sold in a collateral auction to protect HAI’s value and ensure confidence in the protocol
9/ KITE
Governance token for ensuring a decentralized and community-driven approach
KITE holders can vote on system changes and the protocol’s development, like adding/removing collateral types
10/ Plus, HAI boasts the best dapp design in the game
It’s user-friendly and efficient
Easy to deposit collateral and take out loans
Check it out for yourself and get HAI on your own supply
11/ Official Links
Discord
https://discord.com/invite/pX8m6zXNKu…
Telegram
https://t.me/+0iIhX0f9DDAxODE5…
Website
https://www.letsgethai.com/
If you find this helpful, please support us by subscribing and following.
Everythingblockchain — Freethinkers, Writers ✍, Blockchain explorers 🔭
In pursuit of simplifying the different blocks of the chain metaverse
Socials
Twitter, Medium, Youtube, Reddit, Substack
The information provided through this work is intended solely for educational purposes and must not be treated as investment advice. Any lapses in presenting any of the information correctly are ours alone. We disclaim any liability associated with the use of this content.
