Hatom is a DeFi ecosystem on MultiversX that offers lending, borrowing, liquid staking, a native stablecoin, and more to shape the DeFi landscape.

In decentralized finance (DeFi), having a comprehensive ecosystem is crucial for growth and sustainability. This is where Hatom comes into play. By leveraging MultiversX, it offers an extensive range of products, including lending and borrowing protocols, liquid staking, a native stablecoin, and innovative services like lending. These features aim to reshape the DeFi landscape, providing users with secure, efficient, and versatile financial solutions. Hatom aims to drive the future of decentralized finance.

What is Hatom (HTM)?

Hatom (HTM) was founded in 2021 with the goal of revolutionizing the DeFi landscape on MultiversX. The project quickly advanced, launching the Hatom Lending Protocol in Q2-Q3 2022. This non-custodial protocol allowed users to lend and borrow crypto assets securely. The same period saw the creation of the Liquidation Bot V1 to streamline liquidation processes.

In Q4 2022, Hatom introduced a robust Governance Module and a microservice akin to “TheGraph” to enhance front-end interactions. Q1 2023 marked the launch of Hatom Liquid Staking, enabling users to stake their assets and earn rewards. This was followed by the development of a Chainlink-like Price Oracle to aggregate price submissions and enhance data reliability.

Q2 2023 saw the introduction of the Guardian Bot to monitor the lending protocol and ensure asset price accuracy. Hatom V1.5 was also launched, featuring a revamped platform design and the integration of synthetic tokens like WETH, WBTC, and BUSD. In Q3 2023, the “HTM” Token Generation Event and public mainnet launch were significant milestones. Hatom USD (USH), the first native stablecoin on MultiversX, was introduced in Q4 2023, along with leveraged liquid staking.

Looking ahead, Hatom plans to launch isolated lending pools in Q1 2024, a cross-chain lending protocol based on ZK technology in Q2-Q3 2024, and a Hatom dApp SDK and Safety Module in Q4 2024. By Q1 2025, Hatom will implement an HTM Staking Module and a buy-back module to attract liquidity. A full-fledged Hatom Risk DAO is planned for Q2 2025, highlighting Hatom’s commitment to decentralization and community-driven growth.

The Hatom team, including co-CEOs Ahmed Serghini and Oussa Guennouni, Chief Development Officer Soufiane El Mouatassim Billah, Chief Technology Officer Franco Cucchiero, and Technical Advisor Federico Caccia, brings a wealth of experience to the project. Hatom Labs supports the ecosystem’s growth, providing financial and technical assistance to innovative DeFi initiatives and ensuring sustainable development and expansion.

How Does Hatom Work? Lending Protocol and Liquid Staking

Hatom serves as MultiversX’s first liquidity protocol, designed to revolutionize the DeFi landscape through diverse products. At the core of Hatom’s offerings is the non-custodial Lending Protocol, a decentralized platform for lending and borrowing within the MultiversX Network. This protocol leverages algorithmic methods to facilitate seamless transactions between market participants, ensuring security and stability through a comprehensive suite of infrastructure modules, including an indexer, price oracle, and guardian.

The Hatom Lending Protocol operates on a peer-to-pool basis. Liquidity providers, or suppliers, contribute assets to the market, earning interest on their deposits. On the other hand, Borrowers secure loans by adhering to a collateralized model, which minimizes risk and ensures secure transactions. The protocol’s design allows for dynamic adjustments of interest rates based on supply and demand, calculated automatically by smart contracts without intermediaries.

Supplying assets to Hatom involves depositing tokens into a pool. Users gain interest on these deposits, derived from the interest borrowers pay. The deposited tokens are represented by HTokens, which accrue interest over time. These tokens are receipts that prove the user’s contribution to the protocol and are necessary for withdrawing the supplied assets. The interest rates, or APYs, are variable and depend on the utilization rate of the assets in the pool. Suppliers can withdraw their tokens anytime, provided sufficient liquidity exists in the pool.

Borrowing from Hatom requires users to deposit collateral, which secures their loans. The amount that can be borrowed is determined by the collateral factor of the deposited assets and the available liquidity in the pool. Borrowers repay their loans using the same asset they borrowed, plus accrued interest. The health factor of a user’s position, a numeric representation of the safety of their deposited assets against the borrowed assets, plays a crucial role in avoiding liquidation. If the health factor falls below a certain threshold, the position may be liquidated to maintain the protocol’s stability.

The Hatom protocol utilizes a sophisticated Price Oracle infrastructure to ensure accurate pricing and reliability. Oracle Bots autonomously push prices to the Price Aggregator Smart Contract, making these prices available on-chain. This system ensures that all assets can be accurately represented in a common unit, facilitating reliable interactions with the lending protocol.

The Guardian Bot further enhances security by monitoring the lending protocol for any discrepancies in asset prices. It can autonomously pause the protocol if irregularities are detected, ensuring continuous monitoring and necessary action to maintain stability.

As the foundation of the Hatom Ecosystem, the Lending Protocol paves the way for other innovative DeFi solutions, including Liquid Staking, which allows users to stake their assets and earn additional rewards.

Source: app.hatom.com

Liquid Staking

Hatom’s Liquid Staking module offers significant advantages over traditional staking, enabling users to access liquidity for staked collateral. This innovation is set to attract more participants to the MultiversX PoS economy, enhancing the network’s security and stability by locking in more value. Instead of conventional staking, users can deposit funds using smart contracts linked to Hatom’s network of node operators, receiving sEGLD tokens proportional to the staked EGLD. These tokens, pegged to EGLD, can be used in DeFi scenarios, such as collateralizing loans, and accrue value over time following staking rewards.

Liquid Staking operates by allowing users to delegate their EGLD to Hatom’s whitelisted validators, securing the network while receiving sEGLD tokens. These tokens represent a reward-bearing version of EGLD, usable in decentralized finance applications like Automated Market Makers (AMMs), Lending Protocols, and NFT Marketplaces. This system enables users to earn interest from staking EGLD with validators while supplying sEGLD in the Hatom Lending Protocol. Thus, users can no longer choose between staking and supplying their assets; they can benefit from both.

Hatom’s protocol ensures a fair distribution of EGLD across a decentralized network of whitelisted validators, known as Hatom Node Operators. This allocation considers each validator’s liquidity and Annual Percentage Rate (APR), optimizing users’ returns. The introduction of HsEGLD (HatomStaked EGLD), an interest-bearing version of sEGLD, further enhances the yield. HsEGLD combines staking rewards from validators with borrowing interest earned when supplying assets on the Lending Protocol. Users can activate HsEGLD as collateral to earn additional rewards.

Additionally, xEGLD represents a leveraged version of sEGLD, an Interest Compounding EGLD Index. This innovative solution amplifies staking returns through a leveraged liquid staking strategy, allowing users to maximize their yields up to 3.3 times while retaining spot exposure to EGLD. By leveraging the liquid staking smart contract as a price oracle for sEGLD, Hatom ensures the security of xEGLD by minimizing liquidation risks associated with price fluctuations.

sEGLD, HsEGLD, and xEGLD will have their liquidity pools in a Stableswap Dex, providing stakers quick access to their staked funds and bypassing the standard 10-day cooldown period. This comprehensive approach to liquid staking not only boosts staking rewards but also enhances liquidity and flexibility within the MultiversX blockchain.

Source: app.hatom.com

Hatom Use Cases

Hatom’s protocol on MultiversX offers a range of compelling use cases that illustrate its flexibility and potential for enhancing DeFi operations. Here are several key applications:

• Long-term Investment and Earning Interest: Users with a long-term investment in MultiversX or its tokens can earn interest on their assets without needing to fulfill any loan requests or engage in speculative risks. This provides a stable income stream for investors looking to maximize the utility of their holdings.
• Collateralized Borrowing: Hatom allows users to take loans in an over-collateralized manner through a simple and user-friendly interface. This process doesn’t require users to negotiate terms or decide on funding periods and maturity dates, streamlining the borrowing experience. Collateralized loans help users leverage their assets without selling them, enabling liquidity for other investments or unexpected expenses.
• Risk and Liquidation Management: The protocol’s risk and liquidation mechanisms protect the system and its users. When the value of a borrower’s collateral falls below a certain threshold, liquidation processes are triggered to mitigate default risk. Liquidators in the ecosystem can participate actively, creating a competitive market that enhances the protocol’s stability.
• Interest Rate Model and Liquidity Incentives: Hatom’s interest rate model adjusts rates based on the supply and demand ratio of each asset, encouraging users to provide liquidity to the protocol. This dynamic model ensures that interest rates remain competitive, balancing supply and demand effectively to incentivize both borrowing and lending activities.

In conclusion, Hatom’s protocol offers diverse use cases that cater to various needs within the DeFi space, from earning interest on long-term investments to efficient borrowing mechanisms and robust risk management, making it a versatile platform on MultiversX.

What is the HTM Coin?

HTM is the native cryptocurrency of the Hatom ecosystem, used for governance and utility purposes. Its maximum supply is capped at 100 million units, of which 16.67 million (16.67%) are already in circulation (June 2024).

The HTM token, built on the MultiversX Standard Digital Token protocol, is the cornerstone of the Hatom Ecosystem. It plays a crucial role in governance, enabling a community-driven decision-making process that impacts the Hatom Protocol and all associated products, such as the Lending Protocol, Liquid Staking, and Hatom USD. HTM token holders can participate in governance by voting on critical upgrades, feature integrations, and token listings, thereby shaping the future of the ecosystem.

The HTM token is more than just a governance tool; it offers various benefits to its holders. By staking HTM tokens, users can earn a share of the revenue generated from multiple streams, including the Lending Protocol and Liquid Staking. This staking mechanism not only incentivizes long-term participation but also ensures the ecosystem’s financial sustainability. Additionally, HTM tokens can be used as collateral within the lending protocol, providing users with the flexibility to borrow against their holdings without liquidating their assets.

To further enhance security, HTM tokens can be deposited into the Safety Module. This module acts as an additional security layer for the protocol, with users earning incentives in the form of HTM tokens purchased from the open market using a portion of the protocol’s revenue. This innovative approach helps maintain the token’s value and stability while rewarding active participants.

The tokenomics of HTM are designed to support long-term growth. The total supply is capped at 100 million tokens, distributed over five years to incentivize sustained involvement. The allocation is as follows: Public Sale (5%), Private Sale (13.34%), Ecosystem (20%), Treasury (17.66%), Liquidity (20%), Team (15%), Seed Round (7.5%), and Advisors (1.5%).

Source: docs.hatom.com

The HTM token is integral to the Hatom Ecosystem, driving governance, offering financial incentives, and enhancing security. Its thoughtful design and multifaceted utility position it as an important element in the DeFi landscape on the MultiversX blockchain.

Hatom Main Features

Hatom is revolutionizing DeFi with innovative features, ensuring stability and efficiency. Here’s a closer look at the core elements driving Hatom’s ecosystem.

Safety Module

The Safety Module acts as a protective buffer against unforeseen fund losses in the Hatom Protocol. It absorbs the impact of unexpected shortfall events, providing an additional security layer. Users can deposit a range of assets, including EGLD, sEGLD, BUSD, USDT, USDC, WETH, WBTC, UTK, and HTM, to earn safety incentives in HTM tokens. These funds may compensate for any protocol losses, ensuring a robust safeguard against risks like smart contract failures, liquidations, and oracle issues. This mechanism significantly enhances user confidence and protocol resilience.

Hatom USD

USH is the first native, over-collateralized, decentralized stablecoin on the MultiversX blockchain, pegged 1:1 to the U.S. Dollar. Users can mint USH by providing collateral such as WETH, EGLD, WBTC, and USDC. This multi-backed approach ensures USH’s stability. Additionally, Hatom introduces sUSH, an interest-bearing version of USH, accumulating real yield through various mechanisms. This innovative stablecoin is designed to provide stability amid market fluctuations and offers a sustainable, decentralized alternative to traditional stablecoins. USH aims to revolutionize the DeFi space with enhanced security and reliability for users.

Source: ush.io

The USH Staking Module enables users to earn passive income by staking USH and receiving sUSH, an interest-bearing token. Revenue sources include minting fees from the Lending Protocol, Isolated Pools revenue, and Boosted Vaults streaming fees. This diverse model ensures sustainable yield for sUSH. For instance, with a significant price increase in EGLD, the APY on sUSH can rise substantially, incentivizing further minting and collateral contributions. Future expansions will integrate various Liquid Staking Tokens (LSTs) like stETH, cbETH, and rETH, enhancing the module’s versatility across multiple ecosystems.

TAO Bridge

The TAO Bridge connects the Bittensor and MultiversX ecosystems, allowing seamless asset bridging. Once bridged, users can utilize wTAO tokens within the Hatom ecosystem, participating in Lending Protocol and Liquid Staking. This integration opens diverse DeFi opportunities, enabling users to earn interest and provide liquidity without selling their assets. TAO will also be integrated into major decentralized exchanges, enhancing liquidity and facilitating efficient transactions across the MultiversX ecosystem. This innovative solution aims to expand the usability and adoption of both ecosystems, offering greater flexibility and potential returns for users.

Source: app.hatom.com

Booster

The Booster is a unique feature in Hatom’s lending protocol, enhancing user rewards. By staking HTM tokens in the Booster module, users can unlock extra APYs, increasing their overall yield. Users must stake HTM tokens equivalent to 10% of their total supplied assets to maximize benefits. The Booster APY combines with the base APY, offering substantial returns. This flexible feature allows users to maintain boosted positions even during market volatility, reflecting Hatom’s commitment to optimizing rewards. Users can withdraw staked tokens anytime, though a cooldown period applies.

Hatom’s core features, including the Safety Module, USH stablecoin, TAO Bridge, and Booster, are designed to provide stability, enhance user benefits, and foster a secure and efficient DeFi ecosystem. As Hatom continues to innovate, it aims to deliver even more advantageous opportunities for its users.

Is HTM a Good Investment?

HTM offers compelling features like its decentralized stablecoin USH, liquid staking, and innovative Booster module, making it a standout in the DeFi space. The token’s integration into the Hatom ecosystem enhances its utility and reward potential. However, HTM’s success is closely tied to the future of MultiversX, which adds a dependency layer. Additionally, the competition in the DeFi sector is intense, with many projects vying for dominance. Despite these challenges, HTM’s offerings position it as a noteworthy contender in the evolving DeFi landscape.

How to Own HTM?

To own HTM, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy HTM.

News on Hatom

According to what was announced by the Hatom team on May 15, 2024, Hatom is addressing the stablecoin liquidity issue on MultiversX by enhancing their ecosystem with Hatom USD (USH) and Booster V2. Booster V2 introduces features like global position tracking, multiple deposit options, and a dual-batch reward system to maximize APYs. Hatom USD (USH) aims to provide a stable, over-collateralized stablecoin to support DeFi growth on MultiversX, offering a hedge against volatility and passive yield opportunities.

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