Hippo Finance, a liquidity mining platform on Ethereum, today announces the launch date of its community governed DeFi hedge fund. Users will generate returns from staking HIPPO tokens in various farming pools, along with growing the decentralized hedge fund which token holders decide to use as a collective.
How does it work?
Hippo Finance is powered by a three token ecosystem: HIPPO, Angry Hippo (aHIPPO), and Dark Hippo (dHIPPO). Each token has its separate use case which compliments each other through staking to form a powerful positive feedback loop. The Hippo tokenomics are designed to distribute all value captured by the protocol back to investors through community governance. Ultimately the mission is to provide a secure long-term farming platform for crypto investors with plans to scale onto Polkadot.
Once launched, the liquidity mining programs and hedge fund management will work as per the following diagram.
Users stake HIPPO tokens individually to earn aHIPPO as rewards, or can provide HIPPO/ETH liquidity on Uniswap to enjoy a x1.5 multiplier. Additionally, aHIPPO/ETH LP tokens can be staked to farm dHIPPO tokens. Stakers will earn 75% of rewards, 20% goes to the fund contract, and 5% is allocated to the development fund. Through on-chain voting token holders can then decide how to manage the hedge fund with the following choices:
- Burn the tokens to reduce the total supply, driving the price up.
- Collectively invest in another DeFi platform or ICO, for the dHIPPO fund, this will be a Polkadot based project.
- Distribute the funds as dividends to HIPPO stakers.
Why use Hippo Finance over other protocols?
With Hippo Finance, investors find a protocol with a unique use case, token designed for long-term sustainability, plans to scale onto Polkadot, and most importantly that has been audited before launch. For example, to avoid over emission there is a fixed total supply 163,737 HIPPO. Furthermore, the platform’s code has been audited by a reputable security firm Solidity Finance. Additionally, farming of aHIPPO and dHIPPO tokens will not go live until 24 hours after a second security audit by well-known auditor NCyotee.