Actuator.finance | Unlock Liquidity & Flexibility in HEX Staking
Article written to recognize Actuator.finance as a supporter of HexConference.com
Actuator.finance is a decentralized protocol that enhances the functionality of existing or new HEX stakes by allowing stake owners to mint fungible ERC20 tokens known as ‘HEX Time Tokens’ (HTTs). These tokens are backed 1:1 by the stake’s underlying HEX and are redeemable for HEX on or after a designated redemption day chosen by the staker.
How Actuator Works
Delegation: Users can delegate a new or existing HEX Stake Instance (HSI) to the Actuator protocol, effectively wrapping the stake with additional functionality.
- Minting HTTs: Once delegated, stakers can mint HTTs against the stake’s intrinsic HEX value, which includes the initially staked HEX plus any accrued rewards. The total quantity of HTTs minted cannot exceed the extractable HEX value of the stake for the chosen redemption day.
- Trading and Liquidity: HTTs can be traded on various platforms, providing stakers with liquidity before the stake’s end date. This system promotes efficient pricing and market-driven yield curves for HEX across different redemption days.
Redemption: On or after the redemption day, HTT holders can redeem their tokens 1:1 for HEX. The protocol ensures that the underlying HEX is available for redemption, maintaining the value and trust in HTTs.
Benefits of Using Actuator
- Liquidity: Stakers can unlock the intrinsic value of their HEX stakes without waiting for the end stake date by minting and trading HTTs.
- Fixed Returns: Purchasing HTTs allows investors to lock in a fixed rate of return in HEX terms, as each HTT is redeemable for a specific amount of HEX on the redemption day.
- Market Efficiency: The fungibility and tradability of HTTs contribute to a more efficient and liquid market for HEX stakes, enabling better price discovery and investment strategies.
- Flexibility: Actuator supports both new and existing HSIs, allowing users to wrap their stakes with additional functionality and unwrap them back into standard HSIs as needed.
Considerations
- Redemption Day Selection: Choosing a redemption day prior to the end stake day should be done cautiously, as it may have implications on the stake’s value and the ability to mint HTTs. Typically, users select a redemption day that falls on or after the end stake day.
- Gas Fees: While the protocol incentivizes timely end staking, users should be aware of potential gas fees associated with ending stakes and redeeming HTTs.
Actuator provides a novel approach to enhancing HEX staking by introducing liquidity, fixed returns, and market efficiency through the creation and trading of HEX Time Tokens. By leveraging the intrinsic value of HEX stakes, Actuator offers stakers and investors greater flexibility and opportunities within the HEX ecosystem.
Learn More and Follow:
Website: https://actuator.finance
App: https://app.actuator.finance
Docs: https://docs.actuator.finance
Telegram: https://t.me/actuatorfinance
𝕏: https://x.com/actuatorfinance
Checkout the talk Actuator.finance gives at the 5th annual HexConference.com
Schedule:
Mati Allin LLC 2021–2024 All Rights Reserved. This is not financial or therapy advice.
