The Hummus Hangout #3: Boosted Yields
Boosting Your UX, and Your Yield
TL;DR
- Hummus Exchange will deploy more than $2 million in METIS token rewards over the next several months thanks to the incredible support of the MetisDAO and its Metis Marathon.
- Deposit stablecoins and stake HUM tokens to boost your yield by generating veHUM over time.
- If you unstake any HUM then you lose your veHUM and therefore lose your boost.
- Yield (rewards) is paid in HUM tokens, and while the Metis Marathon is running, also in METIS tokens.
Staking Basics
The Hummus Exchange offers stablecoin swaps with extremely low slippage and minimal fees in addition to a variable stablecoin yield farming mechanism, all packaged in a slick and simple UI.
The backbone of the Hummus stableswap protocol and the initial utility of HUM is the staking mechanism. Hummus allows you to deposit and then stake MAI, m.USDC, m.USDT, and m.DAI single-sided in its liquidity pools. “Single-sided” simply means that the user only needs to stake one type of token.
Upon completing the staking transaction you immediately begin earning rewards on your deposit. These rewards are currently paid in HUM tokens at the “Base APR” rate shown on the “Pool” page. During the Metis Marathon, rewards will also be paid in METIS tokens.
Boosting Yields with HUM & veHUM
Additionally, you can significantly boost your APR by also staking HUM tokens on the veHUM page. By staking HUM you will accrue veHUM on an hourly basis. You can then claim your accrued veHUM on the veHUM page. The veHUM tokens will be placed in your wallet once claimed.
The more veHUM you have, the higher your boosted APR is. The more MAI, m.USDC, m.USDT, or m.DAI you have staked, the more veHUM you will need to boost your APR.
Important! If you unstake any amount of HUM then you will lose all of your veHUM. That is, you will lose any veHUM you have accrued on the “veHUM” page and any veHUM you have already claimed. Therefore, the longer your HUM remains staked, the more VeHUM you accrue, which results in a greater yield (APR) boost. Simple.
After you have earned your HUM rewards on your stablecoin(s) deposit you can claim your HUM on the Pool page and the HUM tokens will then appear in your wallet. You can then stake your new HUM to get an even higher APR, hodl, or sell it on the open market. Claiming your HUM token rewards will not incur any penalties at present.
Don’t forget to add the HUM contract address to your MetaMask wallet!
HUM token: 0x4aac94985cd83be30164dfe7e9af7c054d7d2121
For users seeking yield, Hummus Exchange also allows single-sided liquidity provision and allows users to provide unilateral liquidity. The pools can effectively trade more naturally with each other. This is a result of the way the tokens assets and liabilities are recorded by the protocol. The end result? Greatly reduced slippage experienced by end users.
What is veHUM?
For readers newer to DeFi, “veHUM” means “voting escrow HUM,” akin to the same proven function of Curve Finance. In the future, veHUM will be used in the Hummus Exchange’s governance module. Here’s how it will work.
On Hummus Exchange, rewards, currently paid in HUM and METIS tokens, go to users who provide liquidity. The provision of this liquidity, individually and in toto, will be measured by a “liquidity gauge.” Specifically, the liquidity gauge measures how much value users have provided in a liquidity pool. Each pool has its own gauge, and each gauge has its own weight and type. The weight of the gauge represents how much rewards are given to the liquidity gauge, and therefore, ultimately, to the liquidity providers.
Users with veHUM will be able to vote on emissions (rewards) as they pertain to the main pool, alt pool(s), and factory pool(s). The more votes a gauge receives, the greater its weight, and therefore the greater the rewards given in that pool, and the lesser in the other pools.
Put simply, emissions (rewards) will go where the votes go.
ICYMI: The Hummus Marathon and New Fee Distribution
Missed the news or just new around here? No problem, we’ve got you covered!
Hummus Exchange is joining the Metis Marathon as the leading Automated Market-Maker (AMM) on the Metis Andromeda network. Over the next 6 months, Hummus will be deploying over $2 million in Metis incentives for our growing community!
Add this bonus to our new fee distribution strategy, and you’ve got one creamy dip.
About the Metis Marathon
MetisDAO Foundation has announced the Metis Marathon, a 26-week long builder incentive program that aims to incentivize a fierce development of the Metis ecosystem. Besides introducing some of the Top DeFi protocols by TVL to our ecosystem, the Marathon will also help create a native powerhouse by directly incentivizing some of Metis’ most innovative native dApps.
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.
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