The decentralized finance space has been getting a lot of attention this year, with a lot of new projects and teams taking the center stage to highlight a variety of innovative applications. Inspired by these events and after getting to experience first-hand what it means to interact with the DeFi space we decided to bring you HedgePay. HedgePay is a decentralized finance application that focuses on providing a stable income stream to its investors, helping them on their journey to financial freedom.
The fundamental idea of giving back rewards to investors is not new in crypto space. Many projects have rewards for mechanics but most of them have the drawback of being bound to the trading volume of the project’s token. In layman terms, if investors lose interest and transactional volume drops, rewards will also stop flowing. Rewards can also be dependent on trading taxation so, for investors to get their rewards, the underlying asset itself must be sold, creating negative pressure on the price. HedgePay decouples the reward stream from the current market state. Once somebody gets a stake in our project, they will receive rewards indefinitely as long as they hold on to their coins. By utilizing our proprietary risk-reduction algorithm to diversify investments, we will be able to ensure steady growth in a volatile market space. Our goal is to generate more rewards over time without having to rely on mechanics that can create a negative pressure on the token price.
Core PhilosophyOur main philosophy is focused on the idea of keeping rewards flowing to our investors on a monthly basis, that we call a salary. We want to ensure a consistent and growing salary for our investors to aid them on their path to financial freedom. We aim to run the token on a precise business model, focusing on and implementing ideas that can fuel the token mechanics while aiming to provide services of value to clients.
HedgePay commits to this philosophy and follows the Three-Fold-Path: accessibility, security and income generation.
AccessibilityAccessibility is the major obstacle all cryptocurrencies face when fighting for adoption. HedgePay will bridge the gap between liquidity and investments while making passive income a one-step process. By automating passive income, the HedgeFi Ecosystem simplifies the journey and focuses on generating usable income.
SecuritySecurity is paramount for any investment and the rapidly developing blockchain space is currently prone to a variety of risks that are technical, fundamental, and social. We have engineered HedgePay to deliver its reward services without the risk of intolerable loss. HedgePay utilizes a proprietary zero-risk liquidity locking mechanism that will soon be available as a service to other parties. Revenue generated from our services is invested back into the HedgeFi Capital Fund which distributes rewards to investors. HedgePay is backed by GNOSIS multi-signature systems, and proprietary modular smart contracts designed to protect against traditional vulnerabilities.
Income GenerationPassive income is the backbone of HedgePay. Our fund is structured to utilize investments to generate a monthly income stream that can be used to purchase goods and services. Actualize your returns and improve your daily life.
The Path AheadHedgePay will start in the form of an Exclusive Investor Opportunity (EIO). This stage will span at most 4 weeks and have 4 different phases, giving investors the chance to acquire up to 25% of the total token supply. The EIO is exclusive, meaning that only a select few can take part in it and get the chance to purchase HPAY at an early discounted price.
The EIO will end with part of the funds raised being locked as liquidity and part of the funds to be used for generating rewards.
Liquidity LockingHedgePay uses its proprietary liquidity lock. Funds will be locked biannually with an automatic lock renewal 7 days before expiration. Renewal will be amended only in exceptional cases such as security issues or fundamental changes. Approximately 70% of the funds raised during the EIO will go to the liquidity lock.
Mitigating Market VolatilityOur focus is to improve monthly rewards for investors while ensuring maximum allowable stability. HedgePay’s mechanics are engineered to address the brutal market volatility seen widely within the cryptocurrency markets. This will also allow a new class of investors that were initially too cautious to invest in the Decentralized Finance space. HedgePay liquidity is pegged to a stable coin asset helping to keep the price calm while our internal algorithms incorporate features such as buyback operations and automatic liquidity generation.
The HedgeFi FundThe HedgeFi Fund is responsible for managing reward generation strategies. Approximately 30% of the funds raised during the EIO will go to the HedgeFi Capital Fund. The value of the rewards generated by the fund capital are directly proportional to the amount disbursed in the form of a monthly salary. This incentivizes our direction to improve the HedgeFi Capital Fund in order to create revenue to expand our services. One of our top priorities is to provide an increasing number of services that will generate revenue, which will be used to increase the capital locked in the HedgeFi Fund. These operations will allow a decoupling of the HedgeFi Fund’s initial dependence on transactional volume. Part of the generated rewards will be used to increase the fund in the form of a feedback loop. Fund capital will also be increased using revenue generated from trading taxes. HedgePay has designed an in-house trading application that will allow contribution to the HedgeFi Capital Fund without traditional pressures against HPAY token’s market price.
Our Business ApproachHedgePay has started with a clear business model at its core and it will be creating value by selling services that can be used to fuel our reward mechanics. The applications that are in our pipeline will tackle both crypto and non-crypto related problems. These solutions will help simplify day-to-day interactions with the crypto-financial ecosystem, and allow investors to actualize their rewards. We believe this business model will encourage widespread adoption and facilitate access to a new range of consumers.
TokenomicsHedgePay uses revenue generated from each transaction to increase the capital of the HedgeFi Fund. Every blockchain transaction that involves transferring tokens is subjected to an 18% fee. Transactions that involve interactions with HedgePay’s contracts will not incur this fee. The revenue generated will be allocated to the HedgeFi Fund to increase the income of investors. Our tokenomics are as follows:
Total Supply : 1,000,000,000
Buy Tax using In-house Exchange: 10%
Sell Tax Using In-house Exchange: 12%
The HedgePay team will allocate 14% of the total taxes to increase the number of services offered to our consumers. HedgePay also directs 20% of total taxation to increase HedgePay’s accessibility and improve widespread adoption. The remaining 66% is allocated to the HedgeFi Capital Fund which generates rewards for our investors.
Initially, only investors that hold at least 1,000,000 HPAY will be able to unlock the monthly salary in the form of stable rewards. Accessibility is a core tenant to HedgePay’s Three-Fold Path, so lowering this threshold to be more inclusive is one of our top priorities. Our current design is to decrease the requirements once the HedgeFi Fund has become decoupled from its early dependence on transactional volume.
HedgePay recognizes that not everyone will be able to unlock the stable coin salary on day one. Our remedy to this is to provide a high-yield staking mechanic that allows investors to increase their holding on their journey to reach the 1,000,000 HPAY threshold.
The HedgePay team’s share of the project will be minted over 1000 days and will never be greater than 3% of the circulating supply.
Closing thoughtsWe at HedgePay are dedicated to the long-term success of our token-based financial ecosystem. In order to demonstrate the level of our commitment, our team has collectively decided to invest our own money into HedgePay during the initial phase of the EIO as our form of generating our personal revenue. Our monthly salaries will be the same as any investor who purchases and holds the same amount of HPAY as we do. The development taxation is utilized to improve the number and quality of services we will offer. The marketing tax will be directed to increase accessibility to new users and improve the overall capital of the HedgeFi Fund.
Here we have finished laying down a summary of what HedgePay aims to be, and are thankful if you made it this far into the article. There will be a lot of challenges ahead but we are confident that our team is capable of tackling any upcoming issue and finding the optimal solution with our community.
We are always open to any question and discussion. You can visit us at
https://hedgepay.org to get a feel of the current state of the project and get in touch with us and our community.
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