The toncoin has been gaining a lot of traction recently, and with its mining apps like Notcoin and Pixelverse, which recently launched, the ton blockchainton has gained massive publicity.
Thus, everyone aiming to hold Toncoin while believing it is going to hit above $10 soonest can leverage Hipo Finance and earn passive income. Hipo Finance has emerged to reward users for holding toncoin. So what is Hipo Finance all about?
Let’s dive into a detailed guide where I explain everything about the platform, including how you can earn passive income and its security, which is everyone’s top priority and this composes of Hipo finance review.
What is Hipo Finance?
Imagine earning passive income from staking your toncoin on a platform that rewards users with a token that can be traded across the DEFI ecosystem. This is Hipo Finance.
Anyone can stake Ton to earn Hton. Hton is a liquid token of the Hipo Finance platform that can be traded for other assets on any Ton Dex platform, like Dedust and others.
What is liquid staking in DeFi?
Liquid staking offers a new way to participate in staking while maintaining access to your crypto assets. Traditional staking locks up your tokens for a set period, limiting their use.
Liquid staking addresses this by creating liquid tokens that represent your staked assets.
How Liquid Staking Works
With liquid staking platforms like Hipo, you can stake your tokens and receive liquid tokens in return (like hTON for TON coins).
These liquid tokens function like regular cryptocurrency: you can trade them on decentralized exchanges (DEXs) or use them in other DeFi applications.
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Importantly, you still earn staking rewards on your original tokens even while they’re locked.
Benefits of Liquid Staking
There are so many benefits of liquid staking and here are the following:
- Flexibility: Liquid tokens allow you to participate in various DeFi activities like trading, yield farming, and liquidity provision, potentially generating additional income.
- Trading Opportunities: With hTON tokens, you can trade on DEXs to capitalize on price movements or take advantage of arbitrage opportunities.
- Optimizing Returns: Liquid staking lets you explore different DeFi options while still earning staking rewards, potentially maximizing your overall returns.
However, Liquid staking provides a way to earn staking rewards while keeping your crypto assets accessible for other DeFi activities.
This can be an attractive option for users who want to maximize their potential returns and benefit from the flexibility of the DeFi ecosystem.
How does Hipo Finance work? – A liquid staking platform
Hipo Finance offers a liquid staking solution for TON coins (TON) and other amazing features. Here’s how it works:
- Staking TON and Receiving hTON: Users can lock their TON coins on Hipo to participate in staking. In return, they receive an equivalent amount of HTON tokens. The exchange rate between hTon and TON reflects the staking rewards earned.
- Using hTON in DeFi: Unlike traditional staking, Hipo allows users to utilize their hTON tokens on various DeFi platforms. This opens up opportunities for additional income generation through activities like trading, yield farming, or liquidity provision.
- Validator Borrowing: Validators on the TON network can borrow the staked TON coins from the Hipo platform to participate in validating transactions and securing the network.
- Flexible Unstaking: Users have the option to unstake their TON coins at any time. However, there may be a cooldown period before they receive their original TON coins and any earned rewards back in their wallet.
Liquidity of hTON
One of the key advantages of hTON is its liquidity. Unlike traditional staking, where your tokens are locked for a period, hTON tokens are freely tradable. This means you can:
- Transfer hTON: You can easily send hTON tokens to others.
- Use hTON in DeFi: hTON can be used in various DeFi applications, such as decentralized exchanges (DEXs) for trading or lending protocols for earning interest.
hTON Price Fluctuations
It’s important to understand how hTON’s price works:
- Fixed Supply: The total number of hTON tokens in circulation remains constant. Each hTON represents a specific amount of staked TON.
- Price Increase with Rewards: The price of hTON gradually increases over time as staking rewards are distributed. These rewards are effectively added to the value of the hTON tokens you hold.
Here’s an example:
- You stake 10 TON and receive 10 hTON (initially priced at 1 TON each).
- Over time, staking rewards generate a 20% return.
- The value of 1 hTON increases to 1.2 TON (reflecting the accumulated rewards).
- As a result, your 10 hTON tokens, initially worth 10 TON, would be worth 12 TON after the staking period.
In essence, hTON provides a way to access the benefits of staking (like rewards) while maintaining control over your assets through its tradability. However, the price of hTON can fluctuate based on the underlying staking rewards.
How is Hipo Finance secured?
Hipo uses a unique approach to connect validators with staked TON coins. Here’s a breakdown of the process:
- Decentralized and Permissionless: Unlike some staking platforms, Hipo operates in a decentralized and permissionless manner. This means there’s no central authority controlling who can participate as a validator.
- Validator Auction Model: Validators compete for the opportunity to borrow staked TON coins. They do this by submitting their proposed return on investment (ROI) in an auction-like setting. Hipo’s protocol automatically selects the validators offering the highest ROI, aiming to ensure optimal returns (APY) for both stakers (who earn rewards) and validators (who benefit from borrowing the TON coins).
- Secure Smart Contracts: All aspects of borrowing staked TON coins and distributing rewards are handled through secure smart contracts on the Hipo platform. These smart contracts have been audited to help ensure the integrity and safety of user funds.
Hipo’s validator model leverages an auction system to promote competition and potentially maximize returns for both stakers and validators. The platform utilizes smart contracts to automate the process securely.
How to Stake Ton on Hipo Finance – Staking Ton with the Hipo app
This guide outlines the steps involved in staking your TON coins with Hipo to earn rewards. Is TON the Next Crypto Giant? Bitget Bets Big!
Requirements:
- A TON wallet that supports Hipo, such as Tonkeeper or the TON wallet integrated into Telegram.
- Sufficient TON coins in your wallet to cover the staking amount and any network fees.
Steps:
1. Connect Your Wallet:
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Open the Hipo app or go to their official website [hipo.finance] and tap “Connect Wallet.”
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Select your preferred TON wallet from the available options.
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Follow the prompts in your wallet to authorize the connection to Hipo Finance.
2. Enter Staking Amount:
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In the staking interface, enter the amount of TON you wish to stake.
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Review the staking details, such as the amount of hTON you will receive (which represents your staked TON)
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Tap “Stake” to proceed.
3. Confirm Transaction:
- Hipo will send a staking request to your connected wallet.
- Open your wallet and review the transaction details (amount and fees).
- Confirm the transaction if everything is correct.
4. Receive hTON:
- Wait for the transaction to be processed on the TON blockchain.
- Once successful, hTON will be credited to your wallet.
Benefits of hTON:
- Represents Staked TON: hTON reflects the value of your staked TON coins.
- DeFi Usage: You can use hTON in various DeFi applications while still earning staking rewards.
Note: This information is for educational purposes only and does not constitute financial advice. It’s important to do your own research before making any investment decisions.
How to unstake on Hipo Finance – Unstaking TON with the Hipo app
Hipo offers flexibility when it comes to accessing your staked TON coins. Here’s how to unstake your TON:
Steps:
1. Initiate Unstaking:
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Open the Hipo app and navigate to the unstaking section.
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Enter the amount of hTON you want to convert back to TON.
2. Cooldown Period vs. Instant Swap:
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Choose between two options:
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Cooldown Period: Wait for a predetermined period before receiving your unstaked TON and rewards. This cooldown period helps maintain network stability.
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Instant Swap: Trade your hTON for TON immediately on a decentralized exchange (DEX) like DeDust or STON.fi. Note that swap fees may apply.
3 Confirm Transaction:
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Review the transaction details in your wallet (amount, fees).
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Confirm the transaction if everything is correct.
Receiving Unstaked TON:
Once the transaction is processed, you will receive your ton:
- If you choose the cooldown period, you’ll receive your unstaked TON and any accrued rewards after the cooldown ends.
- If you opt for the instant swap, you’ll receive TON immediately (minus any swap fees).
Benefits of Staking Ton on Hipo Finance
Hipo offers several advantages for users considering staking their TON coins:
- Transparency and Security: Hipo is built on open-source code, allowing anyone to examine the protocol’s inner workings. This fosters trust and transparency, as users can verify the code’s integrity. Additionally, open-source development encourages collaboration and innovation within the community.
- Accessibility for All: Unlike some staking platforms, Hipo allows users to stake any amount of TON, even as low as 1 TON. This removes barriers to entry and makes staking accessible to users of all investment levels.
- Governance and Community: Hipo utilizes a $HPO governance token. By participating in staking and other activities within the Hipo ecosystem, users can earn $HPO. These tokens grant holders the right to vote on proposals that shape the future direction of the protocol, fostering a community-driven approach. At the time of writing, $HPO token is yet to launch.
- Decentralized and Inclusive: Hipo operates in a decentralized manner. Anyone can become a validator on the network without requiring approval from a central authority. This promotes a more distributed and secure ecosystem.
Competitive Returns: Hipo aims to provide users with an optimized APY (Annual Percentage Yield) through two key features:
- Low fees: The protocol itself maintains minimal fees, maximizing the returns that flow back to stakeholders.
- Validator competition: Validators compete by proposing return rates, creating an auction-like system. This competition helps ensure stakeholders benefit from the most competitive rates possible.
Overall, Hipo presents itself as a transparent, accessible, and community-focused platform for staking TON coins. Its features aim to provide users with competitive returns and a voice in shaping the protocol’s future.
$HPO: The Hipo Governance Token
Hipo utilizes a governance token called $HPO. This token empowers holders to actively participate in shaping the platform’s future. Here’s how:
- Voting Rights: $HPO holders have voting rights on key governance proposals. These proposals can address various aspects like protocol upgrades, feature implementations, or future development plans.
- Community-Driven Development: By participating in voting, $HPO holders contribute to a community-driven approach. This ensures that Hipo’s evolution aligns with the collective values and priorities of its user base.
- Fostering Innovation: Active governance through $HPO voting can help drive innovation within the platform. Users can propose and vote on changes that promote the advancement of Hipo’s DeFi capabilities.
In essence, $HPO grants users a stake in Hipo’s development and direction. This fosters a collaborative environment where the community plays a vital role in shaping the platform’s future.
Conclusions
Hipo finance offers a unique solution for staking TON coins. It combines the benefits of traditional staking (earning rewards) with the flexibility of DeFi through its liquid hTON token.
Users can participate in various DeFi activities with hTON while still accruing staking rewards on their underlying TON.
Thus, Hipo’s innovative validator selection process and focus on transparency through open-source code aim to optimize returns and foster trust.
Additionally, the $HPO governance token empowers users to actively shape the platform’s future.
Overall, Hipo presents a compelling option for users seeking to earn passive income on their TON holdings while contributing to a community-driven DeFi ecosystem.