All You Need To Know About DeFi Cryptocurrencies: HypaSwap

With the introduction of DeFi, the entire banking system was transformed into a much more adaptable framework where anyone can lend and borrow money without encountering needless complications. It's safe to conclude that this system is far more capable and risk-aware than the conventional banking system, even though it isn't fully risk-free given how recent the technology is.

A decentralised non-custodial liquidity protocol called HypaSwap (HYPA), one of several DeFi platforms developed on top of the Ethereum blockchain, allows lenders and borrowers to trade assets through a liquidity pool. To find out more about this brand-new cryptocurrency and its cutting-edge method of handling financial transactions, keep reading.

HypaSwap (HYPA) – The New Token In Town

HypaSwap is a hotspot of the decentralised economy as it is a decentralised liquidity protocol. The protocol's main focus is on lending and borrowing. HypaSwap has implemented several safeguards addressing collateralisation, the state of the liquidity pool, and external penetrations to ensure fair practices and hassle-free transactions.

With lending and borrowing as its main areas of focus, HypaSwap has developed a solid system that allows users to conduct these transactions without running the danger of losing money to fraud or bad loans. The lenders are reimbursed with the interest rate, and the borrowers are compelled to overpay for the loan.

HypaSwap also established a thorough framework for members of the community to actively engage in extra-banking activities like staking and collateral exchanging. To maximise their investment returns and receive incentives for their active participation, members are urged to stake additional tokens.

Features Of The HypaSwap Ecosystem

Borrowing

Borrowers withdraw funds from the liquidity pool in exchange for collateral when they borrow money. The collateral is released after the amount and interest have been paid. Contrary to centralised banking, the collateral must be significantly more valuable than the amount being borrowed.

The needed sum for HypaSwap is equal to 150 per cent of the borrowed sum. As a result, for every 100 ETH borrowed, the borrower must put up 150 ETH as collateral. The collateral is liquidated and disbursed among the lenders if the borrower defaults on the loan. If the value of the collateral drops below 150 per cent of the loaned amount due to price volatility, the collateral is liquidated and dispersed among the lenders.

Lending

The HypaSwap protocol allows users to lend their assets to build a liquidity pool made up of various cryptocurrencies, including ETH and BNB. Every transaction results in the creation of a derivative with a 1:1 valuation that can be saved, exchanged, or redeemed. This implies that the value of the derivative token is still free even while the underlying asset is still locked in the liquidity pool. The owner of the derivative token, also called a fToken, receives ownership of the lent sum once the token is sold.

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Earning Through Lending

Interest rates and HypaSwap Incentives are the two ways that lenders profit in the HypaSwap ecosystem. Since funding the liquidity pool is the first stage of DeFi, lenders are never exposed to risk because loan repayment is guaranteed and profits are promised.

Every time a borrower pays off their loan with interest, the money is divided up among all the lenders whose money was used, and they each receive a portion of the interest rate. If the borrower doesn't make payments, the lenders will be reimbursed by selling the collateral. Lenders are additionally encouraged by HypaSwap Incentives to continue lending and lock in for extended periods because lending is what keeps the protocol operational.

Tokenomics

Like any other conventional liquidity protocol, the HypaSwap protocol deals with a variety of tokens and currencies. HYPA, an ERC-20 token built on the Ethereum blockchain, operates as HypaSwap's native coin.

The HYPA token serves as the main medium of exchange for platform functions like interest rates, fines, staking rewards, etc. HYPA can be earned on the platform, or it can be purchased at the going rate on cryptocurrency exchanges. If you purchase HYPA tokens during stage 2 of the presale, you will receive 4 additional percent of tokens. If you purchase stage 1, you will receive a 6% bonus in HYPA tokens.