Thread by @CrossChainAlex

A new #RealYield opportunity with the launch of The Hoarder from @hoardusdh.

Delta neutral 10 to 25% APY #RealYield for stakers.

Basically an attempt at a legitimate #DeFi savings account!

Here's an overview of how it works; risks, rewards, pros and cons. 1/20

$USDH is a fully decentralized #stablecoin backed 1:1 by a basket of censorship resistant stables: $MIM $USDD $sUSD $LUSD $FEI

I wrote a detailed thread on @hoardusdh (below). This thread focuses on how the protocol generates #RealYield

https://twitter.com/CrossChainAlex/status/1571278671964512257?s=20&t=0m3rlQfvYannKnRCXpLB8A

2/20

Before we start it's important to understand what #RealYield is in #DeFi.

Is it another fad/buzzword or is the future with protocols with a real product and use case generating real revenue 🤔

Open to debate. This thread is a great place to start.

https://twitter.com/TheDeFinvestor/status/1564210510479863810?s=20&t=o2D6delIAguIzlO7mqZEow

3/20

Someone holding $USDH can put that $USDH to work by depositing into The Hoarder.

In return they receive hUSDH 1:1, representing their tokenized share of the vault. 4/20

The $USDH itself is not risked as such, it remains idle in the smart contract, but...

The collateral backing $USDH ($MIM $USDD $sUSD $LUSD $FEI) is deployed in delta neutral strategies to generate stable yield (targeting 10 to 25% APY). 5/20

This is how hUSDH accrues yield which is perpetually claimable by hUSDH stakers.

Your hUSDH can be withdrawn at anytime back for $USDH at 1:1, at which point any unclaimed pending rewards will be auto-claimed.

There are no fees or lockups. 6/20

So where exactly does the hUSDH yield comes from/how is it generated?

Say there is 10,000 $USDH in circulation backed by 10,000 $MIM the $USDH contract.

Bob takes 1,000 $USDH and deposits it into The Hoarder which takes the deposit and redeems it for 1,000 MIM. 7/20

That 1,000 $MIM is deposited into The Hoarder’s current yield strategy.

If that strategy is utilising e.g. $DAI, the $MIM will be swapped to $DAI.

This collateral ($DAI in our example) is then used to generate yield 8/20

Bob can claim his yield at any time. He receives 70% of his generated yield, 25% is used to buyback and burn $HRD (making it deflationary)

The remaining 5% goes to @hoardusdh deficit fund (for if the #DAO can't blacklist a de-pegging collateral asset in time). 9/20

If Bob redeems 500 $DAI, the strategy will auto-compound (claim yield and withdraw liquidity), pay out Bob 500 $DAI (his proportional yield entitlement).

Remaining strategy capital (TVL before withdrawal minus Bob's 500 $DAI) is then deposited back into the yield strategy. 10/20

Bob can then choose to convert withdraw his hUSDH back into $USDH 1:1 or remain in the vault and continue to earn more yield.

Note that, whenever a deposit or withdrawal occurs, all yield from the current strategy is auto-compounded. Easy for happy Hoarders! 11/20

Some important side notes. The Hoarder is only plugged into one yield strategy at a time. This is by design to keep things transparent/simple/realistic.

The current yield strategy is determined by governance, weighted by veHRD-derived voting power. 12/20

If it gains traction could we see "The Hoard Wars": protocols looking to bootstrap liquidity accumulating veHRD voting power.

Doing so in order to make The Hoarder use a yield strategy that deposits into a pool or vault of their choice? 13/20

To summarise, The Hoarder is effectively an auto-compounder/managed wrapper for complex yield strategies funded by an isolated portion of $USDH collateral.

The ambition is to keep it delta neutral to minimize risk and offer realistic, sustainable returns. 14/20

Note, that the The Hoarder $USDH is isolated to protect the integrity and peg of circulating $USDH.

However, be aware that this does mean that you are taking on risk with your hUSDH (on top of de-peg risk with $USDH).

Important to #DYOR and understand it. 15/20

The Hoarder attempts to realise the dream that $UST and $ANC sold but in a legitimate and sustainable manner with delta neutral #RealYield

But even if the mechanism is sustainable and legitimate, investing for an expected return can bring downside as well as upside. 16/20

⚠️ Risks include the usual around smart contract risk.

We also need to trust that the team know what they're doing when it comes to generating yield.

And we are reliant on $USDH remaining at peg. 17/20

Ultimately the intention is to offer everyone access to complex delta neutral high yield strategies that are hard or expensive to operate without scale and expertise.

In my opinion this is what #DeFi should be about. Looking forward to depositing and seeing how it goes! 18/20

Obviously there are risks, this isn't really a "shill" but a high risk project that I believe has a lot of potential.

I know the team personally, and they're doing the right things and speaking to the right people.

This could very well surprise a few. Stay tuned! 19/20

As usual I encourage everyone to #DYOR.

🌐 usdh.finance
📓 docs.usdh.finance
📝 medium.com/@hoardusdh
🐦 twitter.com/hoardusdh
📩 t.me/hoard_portal
📈 bit.ly/3DvQoaS

These are just my opinions and #NFA 20/20