HeCash, the First Rebasing Protocol on Huobi ECO Chain, Launching at 4am, Jan. 6

3 min readJan 5, 2021

HeCash is the first open-source and proveless rebasing protocol. Inspired by the Basis.cash protocol, HeCash takes advantage of the high performance and low transaction fee on Huobi ECO Chain, striving to bring users the best rebasing protocol using experience. Meanwhile, HeCash is excited to announce that HeCash has reached a strategic partnership with CircleSwap and the two will promote the development of DeFi ecosystem on the Huobi ECO Chain in collaboration.

HeCash Consensus Mechanism

HeCash protocol involves three tokens: HeCash (HEC), HeShare (HES), and HeBond (HEB). HEC is a stablecoin pegged to USD with a ratio of 1:1. HES and HEB play important roles during the inflation and deflation of HEC, making it pegged to 1 USD.

Now, let’s take a look at how HeCash works.

When the value of HEC is lower than 1 USD, the system allows users to buy HEB at the price of the square of HEC price. To further explain:

HEB purchase price = HEC price * HEC price

This can help reduce the circulation volume of HEC and as a result, its price will go up; HEB does not have interest expenses nor maturity. When the price of HEC goes above 1 USD, HEB holders are able to redeem HEC with HEB at a rate of 1:1, and get the corresponding profits.

When the value of HEC is higher than 1 USD, the smart contract will first allow HEB holders to redeem HEC at a rate of 1:1. If HEC stays above 1 USD after the redeeming, the inflation of HEC will be triggered and the inflated part will be distributed to staking users in the Boardroom in proportion to their HES staking volume. Boardroom is a place where users can stake their HES holdings. The HES staked in the Boardroom can be withdrawn at any time without a locking period.

Issuance Mechanism

HEC is issued and distributed on a fair and just basis. HEC is distributed among users who deposit HUSD, HT, CIR, HBTC, and HETH to the smart contract. The total supply of HEC is 50,000 and 10,000 HEC will be distributed per day for five days to the five above-mentioned depositing contracts. Hence 2,000 HEC per depositing contract per day.

The deposit volume limit of each address to each depositing contract is demonstrated as following:

HUSD — 100,000
HT — 20,000
CIR — 20,000
HBTC — 5
HETH — 100

Afterwards, HES will be distributed to LPs of HUSD-HEC on CircleSwap. LPs stake their LP Tokens to HeCash to get HES. There will be a total of 750,000 HES for HUSD-HEC LPs, who will share a pool of 6250 HES to begin with, and the pool will be reduced by 75% every 30 days, until all the 750,000 HES are distributed.

The remaining 250,000 HES will be distributed to HUSD-HES LPs on CircleSwap, with a consistent amount of HES rewards every day for a year.

How to get rewards?

How to get HEC?

Go to HeCash website: https://heco.cash/
Connect to MetaMask wallet, select a depositing pool from HUSD, HT, CIR, HBTC, or HETH to deposit the according tokens.

Pool Duration: 4am, Jan. 6–3:59 am, Jan. 11, UTC

How to get HES?

Go to circleswap.org and provide liquidity to HUSD-HEC or HUSD-HES and stake the LP Tokens to HeCash to gain HES rewards.

Pool Duration: 4am, Jan. 11, 2021–3:59 am, Jan. 11, 2022, UTC