The Hector Ecosystem is built on the foundations of TOR and HEC, and TOR is expected to grow in the months and years ahead to become one of the only completely decentralized and algorithm-based stablecoins. This will enable the Hector Finance Project to expand significantly, bringing value to users all around the world.
Here’s what you need to know about the TOR stablecoin.
If you’re new to the world of cryptocurrencies, you’ve probably never heard of a stablecoin before. You’re likely to come across stablecoins if you want to use cryptocurrencies for activities apart from investing or trading, such as financing or lending.
They are digital currencies whose value is linked to real-world assets like the US dollar and were created partly in response to the market volatility of existing cryptocurrencies whose usefulness as a payment method is limited by unpredictable fluctuations.
Stablecoins have become a critical element of decentralized finance (DeFi), a growing category of products in which activities may be conducted without the use of an intermediary such as a lender or broker.
A stablecoin, as its name indicates, is only valuable and trustworthy if its price remains stable, which is why the price of TOR remains at $1.
TOR is the acronym for Tyche Owned Reserve. In Greek mythology, Tyche was the daughter of Zeus and Aphrodite, and she helped to send uplifting messages to the people of that time pertaining to outside events that were beyond their control. She was known as a goddess of fate, fortune, providence, and chance.
The HEC price oracle may be used to trade TOR tokens for newly minted HEC tokens using Time Weighted Average Price (TWAP). Oracles are a critical component of any stablecoin’s core operation and are essentially a system meant to send information to smart contracts in the blockchain.
In order to be a success, the value of TOR needs to be kept at $1. To do that, Hector Finance uses two methods to back this token. They are:
Hector Finance’s ambitions will rely heavily on TOR. A growing demand for TOR increases the use of HEC, as users can only mint TOR by burning HEC. Moreover, Hector Bank will soon be making TOR available for use as collateral.
The stablecoin has already been incorporated into MyCryptoCheckout, an online payment system that enables eCommerce business owners to accept cryptocurrency payments via WooCommerce, one of the world’s largest eCommerce systems. TOR can therefore be used for payment at stores like the All Blacks of New Zealand, Orange Amps, and more.
This is a significant step toward bridging the worlds of cryptocurrencies and conventional finance, paving the way for future growth.
The TOR stablecoin functions much like Terra’s UST. People can mint TOR with USDC or DAI, which subsequently burns HEC tokens, so as TOR continues to grow, so does HEC.
As the HEC network grows, Hector Finance can boost its treasuries and invest in more products that bear a yield, which results in more TOR and HEC growth. This creates a feedback loop where both HEC and TOR tokens contribute to each other’s growth.
Users are essentially compensated for working to keep the price of TOR at $1. When its price rises over the $1 peg, people can mint tokens for $1 each and sell them for a profit, reducing the price until the peg is reestablished.
Consumers can then acquire the token from the TOR Curve pool for under $1 each when the value of TOR drops below the $1 peg and then sell TOR for $1 worth of HEC coins.
The Hector Finance Project is an up-and-coming project on the Fantom Opera Blockchain that has shown much promise. Find out more about how you can get involved in this finance project by following our website!