What a year! 😅
In this article we look back fondly at the Hummus Exchange’s impressive first year! Only a chickpea in The Great Hummus’ eye a mere 12 months ago, Hummus Exchange has built out quickly into a major project on the budding Metis network.
We’re proud of the work our team has done the past 12 months and we’re extremely excited for what’s to come! 👀
Let’s start our story at the beginning…
IDO & Launch
On 18 April, hummus.exchange went live, and there was much rejoicing.
Using Hummus gives users several advantages over traditional swap protocols:
- No impermanent loss risk for liquidity providers
- Single-sided liquidity provision
- Ultra-low slippage for traders
- Minimal fees
Users quickly realized the advantages of the Hummus architecture and the protocol’s TVL rose.
Hummus-Platypus Deal 🤝
Hummus Exchange and Platypus Finance completed a groundbreaking DeFi licensing agreement on 17 May, becoming the first licensed fork of Platypus code, and the only one to-date. As part of the deal, Hummus set aside 10% of total HUM token supply for the Platypus team, to be delivered in weekly installments over the course of 12 months. Airdrops began in February of the following year.
Also as part of the agreement, all contracts created by Hummus were submitted for review by Platypus before going live. Additionally, a time lock of 48 hours is required on all upgradeable contracts. This arrangement will allow for maximum security and transparency for all stakeholders involved.
Enter The Great Hummus
The team jovially introduced its mascot, The Great Hummus, to Metisians everywhere.
The team integrated DIA’s open-source oracles in May. DIA is a cross-chain, end-to-end, open-source data and oracle platform for Web3. The DIA platform enables the crowd-sourcing, validation and sharing of transparent and verified data feeds for asset prices, metaverse data and more. DIA data is simultaneously sourced at a trade level from multiple on-chain and off-chain sources and made available to developers on all relevant layer 1 and layer 2 networks.
The data shipping includes price feeds for stablecoin pairs USDC/USD, USDT/USD and DAI/USD. MAI/USD was later integrated in August. To source the data feeds that make up the Hummus custom oracle, DIA is collecting price data at a very granular level directly from centralised and decentralised exchanges. This allows DIA to build highly accurate, reliable and resilient price feed oracles to run the dApp.
The team later integrated Chainlink in August shortly after the well-utilized oracle debuted on the Metis network. Using Chainlink, Hummus Exchange has access to high-quality, tamper-proof price feeds needed to help detect if any of the listed stablecoins deviate by more than 2% from their USD peg. This helps protect liquidity providers’ deposited collateral as the protocol will automatically halt stablecoin swaps if it spots a deviation, and will also disable withdrawals of other assets from impacted pools. This mechanism proved to be an essential ingredient in the protocol’s safety in the following year.
Our initial integration involved the use of the following Chainlink Price Feeds: USDT/USD, USDC/USD, and DAI/USD. We chose Chainlink as our go-to oracle solution because its infrastructure is seamless to integrate and time-tested in production.
Hummus was grateful to enjoy huge support in its CEG snapshot vote in July. Community Ecosystem Governance is a decentralized voting framework to govern Metis and its Econodes. It empowers the community, the core of the governance, to submit proposals, vote and be responsible for making decisions about the direction of the organization.
In August, The Great Hummus magnanimously decreed a new fee distribution strategy in order to foster an improved, sustainable economy. Portions of fees received by the Hummus Exchange protocol were thereafter distributed to veHUM holders.
September saw the beginning of METIS distributions for veHUM holders; first as an airdrop, and later as streaming rewards. This airdrop represented the first major fee distribution event for veHUM holders. More volume means more fees. More fees mean more rewards for liquidity providers and veHUM holders.
A flashy (and useful!) new dashboard was rolled out on the UI in October. Users could begin easily tracking the protocol’s TVL, volume, and stablecoin pools.
The Great Hummus then lowered swap fees on the main stablecoin pool to 0.01% to encourage better balance across the main pool assets. Fees were also lowered on the alt pool (MAI/USDC) to 0.04%. With lower fees, arbitrageurs and yield farmers are much better incentivized to unstake, swap, and deposit stablecoins to achieve higher APRs. This change aligned with Platypus Finance’s actions earlier that year. This tweak quickly improved balance across the pools.
In August we introduced QiDAO’s MAI stablecoin in a new alt pool. MAI, unlike most other stablecoins, is not hard pegged to the U.S. dollar, but rather uses a soft peg and is backed by a basket of locked coins for collateral. MAI borrowing is decentralized and non-custodial, meaning that only users have control over their funds. This varies from most stable coins which have either a constant peg or a custodial at the heart of the project.
The Race Begins!
August was a big month. It was made so much bigger through the incredibly generous support of the MetisDAO Foundation’s Marathon Program.
In collaborative efforts to drive a deep well of stable liquidity on Metis and underpin the entire DeFi ecosystem with a strong and stable foundation, the Metis Foundation committed 54,000 METIS tokens to bolster Hummus and its innovative offerings.
“The Hummus Exchange team is ecstatic and humbled to be part of the Metis Marathon, and we are proud to contribute to the rapid growth of the entire Metis ecosystem.” — The Great Hummus, Founder.
BUSD Comes, Goes
September saw the introduction of the BUSD stablecoin to the Metis ecosystem and Hummus incorporated it into its main pool. BUSD is a fiat-backed stablecoin founded by Paxos and Binance which is pegged 1:1 to the US dollar. Paxos maintains the peg by holding in custody an amount of US dollars equal to the total supply of BUSD, acting as its reserves in FDIC-insured US banks or backed by US Treasuries.
Several months later, BUSD was phased out due to a lack of ecosystem demand for and usage of BUSD. Deprecating the BUSD pool also helped to consolidate utilized assets to prepare for the deployment of Aave on Metis. Furthermore, the Metis version of BUSD is issued by Paxos, and Paxos remains under investigation by the SEC and has stopped minting new BUSD as a result. Additionally, both Chaos Labs and Gauntlet decided not to recommend it for inclusion for the impending launch of Aave on Metis.
The Great Migration
In the spirit of decentralization, the Hummus Team migrated the HUM-METIS liquidity to Hermes Omnichain effective Wednesday, 7 September 2022. Hermes recently voted to add a HUM gauge, and leveraging its reward mechanism creates better capital efficiency and deeper liquidity. Ultimately, these factors incentivize our community and foster healthy growth. We remain extraordinarily grateful to our excellent partners at Netswap who platformed the HUM token’s IDO in April.
We launched our Discord in October. There was much rejoicing.
This Is Not A Drill
March 2023 wasn’t much fun, but it did test and prove out the Hummus protocol’s automated safety mechanisms. As contagion spread through the market, several stablecoins began to depeg. Swaps on Hummus were automatically disabled after one of the main pool assets slipped 2% or more below their dollar pegs, as designed. Users remained able to withdraw assets, and coverage ratios and APRs adjusted automatically.
The oracles and protocol safety mechanisms worked as expected. Once the assets rose to within 2% of their pegs, swaps were automatically re-enabled.
As a stableswap, the depeg event presented a big test of the Hummus protocols, and its safeguards performed well.
Begin The Hummus Wars
The Hummus Exchange took a huge step in decentralization, utility, and rewards in March 2023 with the introduction of a gauge and bribe mechanism.
With this feature, users with veHUM can vote where emissions go for the main pool and the alt pool. One veHUM token equals one vote. The more votes a gauge receives, the greater its weight, and therefore the greater the rewards given in that pool, and the lesser the rewards in the other pools. Users can divide their veHUM vote across multiple pools and the gauges are rebalanced in real time as users apply and shift their votes.
Put simply, the more votes a pool gets, the HUM and METIS emissions are directed to it, thereby resulting in a higher yield for that pool.
Further stoking the conflict, The Great Hummus added HUM locking to the arsenal available to participants in the Hummus Wars. Users can choose to lock or flexibly stake HUM tokens to generate veHUM. HUM can be locked for up to one year for a maximum veHUM accrual of 120x HUM locked.To reward our long-time users who have been staking flexibly, we raised the maximum veHUM accrual from 100x to 180x the amount of stake HUM tokens.
Future Ecosystem Growth 👻 🦉
Aave v3 markets will soon be deploying on Metis Andromeda following a successful Aave governance vote. This major development is already attracting new protocols.
What’s next? Follow our socials and find your way into our Discord alpha channel 👀
We’re incredibly grateful for the support our community and the Metis team have given us this past year. With an array of innovations planned and already in place, Metis Andromeda is poised to become a major piece of the future of Web3. We’re proud to be a part of it and couldn’t be happier that you’re with us for it.
— The Hummus Team
About Hummus Exchange
The Hummus Exchange protocol is a single-side and decentralized AMM designed for exchanging stable cryptocurrencies on the Metis blockchain.
Users can swap stablecoins on the Hummus Exchange with extremely low slippage and fees. They can also stake stablecoins to generate yield, and stake HUM tokens alongside to boost that yield.
Come check us out! Stop by to swap or stake around for longer.