Hundred Finance Live on Olympus Pro
Hundred Finance is excited to announce the launch of the first stage of its multi-chain bond program, with this first iteration carried out in partnership with Olympus Pro, the industry-leading platform in building protocol-held liquidity, and covering our deployment Fantom with Arbitrum soon to follow!
Cryptocurrency users are now able to purchase HND at a discounted rate in exchange for Beethoven X’s HND-USDC-FTM tokens on Fantom. This is scheduled to be followed shortly by bonds minted from DODO’s HND-ETH liquidity tokens on Arbitrum.
Not only does this initiative allow the public to acquire a stake in the Hundred Finance protocol at a cheaper-than-market price, it also marks an evolution in the project by helping it overcome prevailing issues that impact DeFi bootstrapping programs more broadly.
The Olympus Pro Bond Program assists in bringing about:
- A Significant Reduction in Sell Pressure: Protocol-owned liquidity reduces the impact of mercenary liquidity providers carrying out short-term farming practices. No longer competing solely with other LPs, the sell pressure of these actors is reduced and the ability of a protocol to expand organically increased.
- Absorption of Impermanent Loss (IL): The success of a protocol inevitably causes price appreciation in its native token, potentially leading to significant impermanent loss for liquidity providers. Protocol-held liquidity shifts IL to the largest holder of the native token, the protocol itself.
- Goal Alignment between Protocol and Hodlers: As the protocol acquires more permanently locked liquidity, the liquidity pools can support larger trades and achieve greater price stability when large sells occur. This better incentivizes hodlers as they no longer need to fear the removal of their ability to reduce or exit a position. This better aligns hodlers with the long-term vision of the project, encouraging them to participate in the community and contribute to its growth.
- Generation of a Protocol Revenue Source: Every swap transaction in a pool contributes a fee to the liquidity providers. As liquidity is permanently locked in the project treasury, these fees provide a constant source of revenue for the protocol. Furthermore, project-owned liquidity could hypothetically be used to farm in and of itself, generating further income.
Olympus Pro: An Introduction
Olympus Pro is an extension of the popular Olympus DAO Finance model, whereby protocols sell bonds in order to acquire their own liquidity. Those who hold qualifying liquidity pool tokens can use them to buy a protocol’s native token for a reduced price on the platform, receiving the asset after the completion of a bonding period. The bond price is determined by the supply and demand for bonds, with it trending higher when there is greater demand. As a result, Olympus Pro bonding is a very competitive space, with bonders competing to grab the largest discount. In short, Olympus Pro allows any project to sell bonds in order to acquire liquidity for their DAO or protocol, a major shift in the way liquidity mining works.
Hundred Finance x Olympus Pro Bond Program
In co-creating its own Olympus Pro bonding program, Hundred Finance has requested a bonding period of 5 days and is allocating 200,000 HND tokens to the program (100k HND per chain), with the expectation of it running for a minimum of 4 weeks. We will adjust the allocated rewards and length of the program as needed going forward.
LP Token Acquisition
Implemented Fantom blockchain network, with Arbitrum to follow shortly, the LP tokens that qualify need to be acquired before bonding can begin. The process for acquiring the LP tokens differs depending on the chain on which bonding is taking place.
Fantom: Beets HND-USDC-FTM BPT — Connect to the Fantom network and add liquidity here.
Arbitrum (to follow): DODO HND-ETH DLP — Connect to the Abritrum network and add liquidity here.
Both of these pools have in-built farming options but it is necessary to only proceed to the step of adding liquidity (HND-USDC-FTM or HND-ETH) before proceeding to the Olympus Pro site to begin the bonding process.
How to Bond
Step 1
Proceed to the Olympus Pro website on your chosen chain and select Hundred Finance under Partners or choosing it from the Marketplace:
Step 2
After choosing Hundred Finance and ensuring you are connected to the correct network, you will then be greeted with the bond page below:
Step 3
If you don’t have the required LP token, you can click on the link provided here or in the Bond UI to acquire them:
Step 4
Enter the amount of LP tokens that you would like to supply. You will be quoted an equivalent amount of the payout token in the “You will get” field:
Step 5
If this is your first time bonding, approve the bond contract in the Bond UI:
Step 6
Once the approval is done, you will be able to select the amount of bonds you wish to purchase by either inputting a valid figure or pressing the Max button. Following this, Press Bond to carry out the transaction:
Step 6
Once the Bond transaction is confirmed, you successfully purchased a bond!
Step 7
Your dashboard will now show you your currently vesting bond, as well as those that have fully vested:
Step 8
Once the 5-day vesting period is complete, click the “Claim All” button to claim the bond rewards and send your HND tokens to your wallet!
For further information on Olympus Pro’s bonding programs, consider taking a look at their dedicated docs on their website.
Conclusion
The partnership between Hundred Finance and Olympus Pro provides a valuable service in both acquiring liquidity and managing that liquidity in the most capital efficient and community-friendly way. We plan on this being a major step in our ongoing establishment of a robust treasury of protocol-held assets that will allow us to drive Hundred Finance forward and continue our mission to become the preeminent lending platform in a multi-chain cryptocurrency ecosystem.
