Overview
Protocol Overview
DIVs contain a basket of LP tokens that are 100% maintained by and weighted by depositors and DAMO stakers. These DIVs provide the collateral to generate $HAID. $HAID is 1:1 backed by this underlying collateral. This allows for LP to become much more liquid (and productive) and to be accessed by less crypto-savvy users. For instance, instead of having to manually manage their own risk, they could simply purchase $HAID and have hedged exposure to an entire sector. Essentially, the protocol can leverage a single asset (idle LP tokens) to reach an additional demographic, thus generating added value and rewards with minimal additional risk.
DIV LP is encapsulated in a more liquid $HAID token. These tokens represent a real value of underlying LP and can always be redeemed for such. Therefore, $HAID tokens are real assets with real backing. Consequently, the protocol will heavily incentivize the generating and subsequent LP'ing of $HAID tokens on secondary markets.
Last modified 1yr ago