HERMES token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain HERMES peg of 1 HERMES = 1 AVAX in the long run.
Note that HERMES actively pegs via the algorithm, it does not mean it will be valued at 1 HERMES : 1 AVAX at all times as it is not collaterized. HERMES is not to be confused for a crypto or fiat-backed stablecoin.
HSHAREs are one of the ways to measure the value of the HERMES Protocol and shareholder trust in its ability to maintain HERMES close to peg. During epoch expansions the protocol mints HERMES and distributes it proportionally to all HSHARE holders who have staked their tokens in the OLYMPUS.
HSHARE has a maximum total supply of 70000 tokens distributed as follows:
  1. 1.
    Community Allocation: 5500 HSHARE vested linearly 12 months
  2. 2.
    Team & Dev Allocation: 5000 HSHARE vested linearly over 12 months
  3. 3.
    Rewards: 59500 HSHARE are allocated for incentivizing Liquidity Providers in two shares pools for 12 months
  4. 4.
    Initial mint: 1 HSHARE minted upon contract creation for initial pool
HBOND - HERMES BOND HERMES Bonds (HBOND) main job is to help incentivize changes in HERMES supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of HERMES falls below 1:1 AVAX , HBONDs are issued and can be bought with HERMES at the current price. Exchanging HERMES for HBOND burns HERMES tokens, taking them out of circulation (deflation) and helping to get the price back up to peg. These HBOND can be redeemed for HERMES when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for HERMES when it is above peg, helping to push it back toward 1 HERMES to 1 AVAX ratio. Contrary to early algorithmic protocols, HBONDs do not have expiration dates. If your HERMES is below peg go to tarturus and buy some HBOND. Exchange HERMES for HBOND Redeem after peg is above 1.1 to receive bonus HERMES! All holders are able to redeem their HBOND for HERMES tokens as long as the Treasury has a positive HERMES balance, which typically happens when the protocol is in epoch expansion periods.