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Tokenomics

The HypaSwap protocol deals with multiple tokens and currencies like any other standard liquidity protocol. The native token of HypaSwap is $HYPA, an ERC-20 token based on the Ethereum blockchain. Tokens will be vested for a 2-month period.

NATIVE SPOKEN

The $HYPA token is the primary token for activities central to the platform, like interest rates, penalties, staking incentives, etc. $HYPA can be both earned from the platform or bought from crypto exchanges at the current market price.

DERIVATIVE TOKEN

The derivative token is the hTokens issued as a certificate of deposit to the liquidity pool. The value of the derivative token is set at a 1:1 valuation of the asset deposited. For instance, if you deposited 10 ETH into the liquidity pool, you’ll receive 10 fETHs, where 1 ETH = 1 fETH. The number of hTokens issued is balanced with the number of assets locked in the pool. Once the user redeems the hTokens held and withdraws their deposits, the hTokens are burned to prevent inflation

STAKING PROTOCOL

HypaSwap offers stake benefits to users who stake on HypaSwap. Staking is encouraged to mitigate problems like an unhealthy liquidity pool where liquidity is short. Any $HYPA holders can stake their tokens on the platform to earn good returns. The longer the lock-in period, the higher APY is generated. Stakers are also incentivized with other forms of rewards to always get a safety net ready for the liquidity pool. The stakers can also participate in governance using their staked HYPA tokens.

INCENTIVES AND $HYPA RESERVES

When various DeFi protocols worldwide compete and struggle to increase liquidity by providing incentives to depositors, HypaSwap is a couple of steps ahead with an analyzed and controlled distribution of the $HYPA token.

Out of the total $HYPA supply, we will use a small percentage between 10%-20% (Fixed value to be determined) of the $HYPA tokens to create the $HYPA Reserve.

$HYPA token holders will control the $HYPA Reserve with the single aim of incentivizing the HypaSwap ecosystem and ensuring its advancement, growth, innovation, and development. Furthermore, HypaSwap will contribute an initial insurance deposit to the HypaSwap Safety Module from the $HYPA Reserve.

$HYPA Swap Incentives

$HYPA token holders will be able to submit proposals regarding the distribution of the $HYPA Reserve to the ecosystem to provide:

$HYPA ECOSYSTEM INCENTIVES
The periodic issuance of $HYPA for rewarding $HYPA token holders, i.e., liquidity providers and software developers improving the quality and liquidity of the HypaSwap ecosystem.
$HYPA SAFETY INCENTIVES
The periodic issuance of $HYPA for rewarding $HYPA token holders staking $HYPA to the HypaSwap Safety Module.
GOVERNANCE POWER
The sustainability and liquidity of HypaSwap will depend upon liquidity providers and liquidators, and as such, the HypaSwap protocol will provide governance power to such stakeholders and maintainers of $HYPA.
FEE ISSUANCE
Systematic incentives will encourage users to participate more and stake $HYPA to the liquidity pool and attract policy-motivated users to accomplish the same. HypaSwap will reward these liquidity-enhancing participants with $HYPA tokens and with a portion of the fee generated on the HypaSwap platform.