Hundred Finance: A Week in Review

It would be an understatement to say that it has been an exciting start to 2022 for Hundred Finance. We’ve seen a, frankly, incredible increase in interest in the project from the wider crypto community, and this has carried over to an explosion in our user numbers and total value locked. These important metrics have then had the knock-on effect of bringing about many positive developments for the project, some of which we’re going to use this post as an opportunity to discuss.

The Curve Wars and the Power of Vote Escrow

During the last year, one of the hottest topics within DeFi has been the so-called Curve Wars. Curve Finance, an exchange service built on Ethereum, was actually the source of the code for Hundred’s own veHND rewards system, in which liquidity providers who stake their hTOKENs are rewarded with our HND token, which can then be locked for veHND (vote-escrow HND) and used to influence emissions. This governance mechanic, achieved through variable timelocks, has proved to be one of the most compelling recent inventions in decentralized finance tokenomics.

In essence, vote escrow allows users and even projects and meta-protocols to act to maximize their interests through the accumulation of a governance token and the implementation of strategic voting. In the case of Curve, this has led to the rise of Convex (and others), a protocol specifically devoted to boosting rewards for stakers and liquidity providers alike. Now that Convex has accumulated a proportion of the CRV supply of almost 50%, projects have begun moving to the tactic of bribing CVX holders (the Convex native token) to improve the emissions granted to pools that serve their own users, granting CRV much-increased utility and value by extension.

Hundred Finance, like many, saw the effect of Curve’s tokenomics and realized how it might be positively applied to lending markets in addition to exchange liquidity pools. Lending protocols make up a huge proportion of the TVL in DeFi and our multi-chain vision seeks to unite the largely fractured liquidity that results from a lack of integration between silos held on often different protocols on different chains. We have thus been incredibly happy to see the protocol’s growth in usage and community participation since implementing HND token staking in early December, and look forward to seeing what implementations emerge for veHND in the coming months.

A Week of Integrations

For the sake of brevity, we think it’s most efficient to approach the integrations that have taken place this week in the form of a list. We invite our users to browse this list, ensuring that they’re up to date on the latest opportunities to participate in the project and track its progress on various applications.

SpookySwap

In the first few days of 2022, a governance proposal was put to SpookySwap’s token holders asking if they would like to partner with Hundred in the launch of incentivized liquidity pools. With the “Yes” vote winning with a resounding majority of 99.92%, on the 7th of January we collaborated on the launch of a HND-FTM liquidity Farm that emits rewards to sLP token-stakers paid in BOO, as well as a single-sided BOO staking pool that emits HND on top of regular protocol rewards. Both of these have been a great success, locking over $1.5m in combined funds and improving our overall liquidity on Fantom for our users.

For further details on how to participate, check out our SpookySwap collaboration page at: https://docs.hundred.finance/collaborations/spookyswap

Immunefi

On the same day that the new SpookySwap liquidity pools went live, we were also proud to announce the launch of our new Bug Bounty in collaboration with Immunefi. Focusing on Hundred Finance’s smart contracts and the prevention of potential exploits that would result in the loss of user funds, the campaign is designed to complement Hundred’s own rigorous security practices designed to secure the protocol.

Qualifying bugs can now be submitted to: https://immunefi.com/bounty/hundred-finance/

Beefy Finance

Beefy Finance became the second yield optimizer after long-time supporter Beluga to introduce compounding vaults for liquidity providers on January 8th, demonstrating that we’re a project with yields worth paying attention to.

Hundred Finance Buzz Alive on Crypto Twitter

One of the gratifying things about implementing new tech in novel ways is that it tends to get you noticed. This certainly proved to be the case during the first week of January, with Hundred getting name-dropped by popular and respected accounts on Crypto Twitter. We’d like to extend a special thanks to these individuals and organizations for getting the word out, and for contributing to our thriving Hundred Finance community.

Conclusion

We’d like to conclude this post with another big thank you, this time to community members themselves. Many of you have been active in being there to support new arrivals and see that they find Hundred Finance to be a welcoming project. For this we are truly grateful. One of the major ambitions of the project is to unite cryptocurrency users from across chains, so we applaud those who put aside platform-based divisions and join us in the pursuit of greater economic freedom and efficiency for as broad a user base as possible. This sentiment is especially appropriate this week, as it will mark our launch on the Moonriver network!