Lending and Borrowing coming to Elrond | Hatom Protocol

self.elrondnetwork1m ago
# [Hatom](http://hatom.com/) is a new dApp coming to Elrond that will allow everyone to lend out or borrow EGLD and other ESDT assets. The Elrond Team has been working on Lending and Borrowing for the Maiar Exchange for many months now. In fact, [they postponed it](https://elrond.com/technology/#roadmap) to the fourth quarter of this year. # This is where the Hatom Protocol steps in. Hatom will allow anyone to lend out their assets, such as EGLD, USDC, MEX etc. By doing so, you will be able to earn interest rates on your assets. This could be especially interesting for USDC; because you can already earn interest on EGLD or MEX through staking. But so far, there is no option to get more USDC with **virtually no risk**. Hatom will allow you to lend out your ESDTs (such as USDC) and earn dynamic interest rates on them. https://preview.redd.it/d1udwcexsh191.png?width=1400&format=png&auto=webp&s=e6585b9bd8e404a80747d31cc0e2cec14bdb2c7d # Why do the interest rates change all the time? The rate is variable, because it is based on market supply and demand. If 100 people supply 100 USDC but only 1 person borrows 10 USDC, there is obviously very little demand and a lot of supply, which would result in a low interest rate for those lending out the assets and for those borrowing the assets. # Why would I want to borrow assets? Using Hatom Protocol, you will be able to create short positions or leveraged long positions. Let me give you two examples **Creating a short position:** 1. Deposit 1000 USDC in Hatom Protocol and borrow out 5 EGLD (at 100 USDC = 1 EGLD) against your deposited USDC (you cannot borrow 100% in value of what you deposited, because you have to leave room for the interest you have to pay and for risk of being liquidated) 2. Swap the 5 EGLD for 500 USDC on Maiar Exchange 3. Wait until the EGLD price has fallen. For example to 80 USDC per EGLD 4. Swap your 500 USDC back to EGLD, which would leave you with 6.25 EGLD 5. Repay your loan and the interest rate on Hatom Protocol (e.g. 5 EGLD + 0.1 EGLD interest rate) 6. You are now left with your initial 1000 USDC and an additional 1,15 EGLD worth 92 USDC. **Creating a long position:** 1. Deposit 10 EGLD in Hatom Protocol and borrow out 500 USDC for your collateral 2. Swap the 500 USDC for 5 EGLD on Maiar Exchange 3. Wait until the EGLD price has risen from 100 USDC per EGLD to e.g. 150 USDC 4. Swap your 5 EGLD back to USDC, which would leave you with 750 USDC 5. Repay your loan and the interest rate on Hatom Protocol (e.g. 500 USDC + 20 USDC) 6. You are now left with your initial 10 EGLD and an additional 230 USDC, worth 1.53 EGLD As you can see, you can create **leveraged long positions or short positions** using Hatom. Of course, this does carry a significant risk with it. If your bet on how the market prices will move, did not work, you will be at a loss. # The HATOM Token ($HTM) https://preview.redd.it/pwk0tvmzsh191.png?width=1915&format=png&auto=webp&s=607ece21cb419652b0768629afef4bbdfdccf156 There will be a Hatom Token with the ticker symbol $HTM. This Token **does not exist yet, so do not fall for scams.** The Hatom Token will fuel the decentralized application. It will enable 100% community-driven governance, staking rewards and much more! The Tokenomics for the HTM Token look like this: https://preview.redd.it/rn2nl8z0th191.png?width=1328&format=png&auto=webp&s=b8b6d0e1c6382fb2a3ae7ff99d000733f076b3c3 [Citing Hatoms Documentation](https://hatom.gitbook.io/hatom/learn-more-about-hatom-token/tokenomics): >10% of Hatom tokens will be issued for a **Private Sale,** and one hundred million tokens will be sold to strategic and financial investors in the blockchain space. > >5% of Hatom tokens will be sold during a **Public Sale,** this sale is to provide tokens to Hatom early believers and supporters. > >30% of Hatom token will be allocated to the **Ecosystem,** which is represented by key partners, ecosystem advocates, ambassadors, and advisors. > >The **Treasury** allocation is 18% and will be reserved for unpredicted expenses that might surge. > >2% will be preserved for **Equity Investors** proportional to their equity shareholding in **Hatom Labs LLC**. > >An allocation of 20% will be reserved for the **Community**, which includes the blockchain community, technical audits, and early adopters. > >The **Team** allocation will be 15% of the Hatom Token supply, it incentivizes the current team members and the future ones for their determination and engagement in revolutionizing the **Elrond Blockchain** by rewarding them. # What will be the use case of the Token? **You will be able to stake your HTM Tokens, to earn dividends.** Dividends come from the protocol’s revenue, generated by lending and borrowing. You will earn EGLD, MEX, USDC, RIDE, HTM and maybe even more as more ESDTs will get listed on Hatom. **You will be able to use your HTM Tokens for Governance.** Be part of the decision process and vote on proposed changes. Vote on: * protocol upgrades * protocol changes (change certain parameters e.g. the health-factor) * what Token should get listed next * changes to listing policies * much more **And of course: you will be able to lend and borrow HTM Tokens and also use it as collateral.** Supply your HTM on the protocol and earn an interest rate on them or borrow HTM or use your HTM as collateral when borrowing out a different asset. # Want to learn more? In case you are very curious about the Hatom Protocol, check out the following URIs: [Hatom Website](https://hatom.com/) [Hatom Blog](https://blog.hatom.com/) [Whitepaper](https://hatom.gitbook.io/hatom/learn-more-about-hatom-token/whitepaper-pitch-deck) [Current Development Roadmap](https://hatom.gitbook.io/hatom/learn-more-about-hatom-token/development-roadmap) [Visionary Roadmap (Roadmap for future development)](https://hatom.gitbook.io/hatom/learn-more-about-hatom-token/visionary-roadmap) [Hatom Documentation](https://hatom.gitbook.io/hatom/welcome-to-hatom-protocol/introduction) [Hatom Developer Documentation](https://hatom.gitbook.io/developers-docs/) [Hatom Security Documentation](https://hatom.gitbook.io/security/external-audits-and-analysis/introduction) [Hatom on Github](https://github.com/HatomProtocol) [Hatom on Telegram](https://t.me/HatomProtocol) [Hatom on Twitter](https://twitter.com/HatomProtocol) [Hatom on Discord](https://discord.com/invite/WekwfUDXGp) https://preview.redd.it/vzfrvhe2th191.png?width=1898&format=png&auto=webp&s=1a6a8ad299449c520af921cd2172e7a8416293c3