How to use Hedge

Protocol Overview

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Tokenomics

Hedge tokenomics

Token utility

The Hedge protocol issues 2 protocol tokens - USH and HDG. USH is an overcollateralised stablecoin issued by locking up collateral and as such has a varying supply over time. HDG is the protocol token. At launch, users may stake HDG to earn portion of protocol fees, which are taken during loan initiation - this model may change as the protocol matures and HDG is used for governance.

HDG distribution

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HDG token distribution.

There are a total of 10M HDG tokens.

60% of all tokens are allocated to the community, with 45% of the total tokens given out as liquidity & stability mining incentives. 5% of the total is given out as community rewards which include incentives for integration and potential airdrops. 10% of the total is kept aside for the Hedge Treasury. A portion of the Hedge Treasury will be staked to generate revenues for the team and community, though Hedge will ensure that the staked tokens do not represent more than 50% of the staking pool at any point in time.

15% of all tokens are set aside for investors - with 10% of the total going to seed investors and 5% set aside for future fundraise if needed. The seed investors have a 18 month vesting schedule after token launch with a 1 year cliff.

25% of all tokens are allocated to the core team and are subject to a 3 year vest with a 1 year cliff.

HDG Emissions

Hedge will start liquidity mining at the same time as mainnet launch. This is the expected emission schedule for HDG token emission over the next 6 years. The stability pool incentives are fixed and halve every year.

Target HDG emissions for the 1st year after launch

Target HDG emissions 6 years after launch

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1

| Emissions schedule | Liquidity Incentives | Stability Pool Emissions | Cumulative Total |

2

|------------------------|--------------------------|------------------------------|----------------------|

3

| Month 1 | 70β000 | 112β250 | 182β250 |

4

| Month 2 | 60β000 | 105β951 | 348β201 |

5

| Month 3 | 60β000 | 100β005 | 508β206 |

6

| Month 4 | 50β000 | 94β393 | 652β599 |

7

| Month 5 | 50β000 | 89β094 | 791β693 |

8

| Month 6 | 45β000 | 84β094 | 920β787 |

9

| Month 7 | 45β000 | 79β373 | 1β045β160 |

10

| Month 8 | 45β000 | 74β918 | 1β165β078 |

11

| Month 9 | 45β000 | 70β714 | 1β280β792 |

12

| Month 10 | 45β000 | 66β745 | 1β392β537 |

13

| Month 11 | 45β000 | 62β999 | 1β500β536 |

14

| Month 12 | 40β000 | 59β464 | 1β600β000 |

15

| Year 2 | 500β000 | 500β000 | 2β600β000 |

16

| Year 3 | 400β000 | 250β000 | 3β250β000 |

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| Year 4 | 300β000 | 125β000 | 3β675β000 |

18

| Year 5 | 200β000 | 31β250 | 3β906β250 |

19

| Year 6 | 200β000 | 15β625 | 4β121β875 |

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Stability Pool Emissions

A total of 2M HDG tokens will be emitted over the total lifetime of the Hedge contract. Emissions are dictated according to the following half-life formula, where f(n) represents the total amount of tokens emitted on day n after launch.

$f(n) = \int_{0}^{n} \frac{2000000}{\frac{365}{log(2))}}* \frac{1}{2}^{\frac{x}{365}} dx$

Last modified 12d ago

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