HIP-006 Approval of Hectorbank deal with Rarible Protocol DAO

Background

As you all know, Hectorbank will be one the pillars of the Hector DAO ecosystem. We will integrate a native (!) open interest rate protocol that allows users to lend and borrow digital assets, all within our own ecosystem. This is unique and underlines our position as a spoon of Ohm. Lenders can achieve an attractive APY without any risk of volatility of the (s)HEC price by lending out stable coins. Borrowers can use sHEC as a collateral to leverage their position or borrow stablecoins to use them in different projects without having to unstake sHEC. The benefit for the protocol is that the treasury collects fees, consisting of the difference between APR for borrowers and APY for lenders. This way, the treasury increases, which in return has a positive impact on the functioning of the Hector protocol. We will release Hectorbank in two stages. Hectorbank 1.0 is the integrated protocol in our app and Hectorbank 2.0 will go live on hectorbank.com and will strive to become the leading lending and borrowing protocol on the Fantom chain.

We have worked very hard for the last couple of weeks to release Hectorbank v1, and the moment you have all been waiting for is almost here.

Hector X Rari

As we have announced, for part of the Hector Bank product, we plan to establish a working partnership with our friends at Rarible Protocol DAO. Why Rari? Firstly, Fuse is a protocol / product made by Rari Capital that supports isolated interest rate pools. Fuse allows “pool creators” to spin up customised, isolated pools for lending and borrowing assets of their choice. Pool creators can choose all the unique parameters they want: interest rate curves, oracles, collateral factors, etc. Furthermore, since each pool is isolated, pool creators may customize their pools according to their appetites for risk without compromising or affecting the safety of other pools.

A partnership between Hector and Rari would be huge and very beneficial for both parties. Rari’s breakout product Fuse has currently $1.36B in total value supplied. Through the proposed partnership with Rari, we will be able to collaborate with a talented team that has similar goals to ours. This will enable Hector to seamlessly develop lending/borrowing on top of proven technologies, which will allow us to focus more resources on innovation once Hectorbank goes live.

We have already had positive conversations with the Rari team and Rari’s community is very excited about the proposal we submitted to their forums which details exactly what we’re looking to achieve. You can find the post here: https://forums.rari.capital/d/188-deploying-fuse-on-the-fantom-opera-chain-with-hector-dao

Partnership proposal

After hearing the feedback to the forum post, we worked out a mutually beneficial partnership deal with the Rari team and we now ask you Hectorians’ to either agree or disagree. Together with Rari, Hector will - as a spoon of Ohm - offer a unique native borrowing/lending protocol with influx of fees directly in the treasury.

To deploy a Rari Fuse on the Fantom Opera Chain with Hectorbank, in good accordance and in collaboration with the Rari team, we propose to allocate $ 500,000 in $HEC from the dao funds to Rari. This is approximately 10% of the total DAO funds. The allocated $HEC tokens will remain locked for 6 months and will be released through a vesting schedule. In addition, 30% of revenue generated from parts of the protocol which use Fuse technologies will be allocated to Rari. This ensures future support from and further collaboration with Rari.