Hover: Revolutionizing DeFi with Innovative Tokenomics
Hover, an institutional-quality lending protocol deployed on the Kava EVM, is making waves in the decentralized finance (DeFi) space. Positioned as the central hub for immediate, capital-efficient liquidity, Hover stands out by integrating tokenomics, robust risk monitoring, and a dedicated public team, setting a new standard for DeFi development.
Earning Yield and Borrowing Flexibility:
Hover allows users to earn yield on deposited funds by lending them out. Moreover, depositors can use their funds as collateral to borrow any asset offered on Hover, up to an algorithmically-determined limit. In the event of default or if the loan value surpasses the collateral value, a portion of the collateral is liquidated to settle the outstanding loan.
Innovative Tokenomics:
Hover goes beyond the conventional non-custodial lending market by incorporating meaningful tokenomics. The platform offers discounts on loans, rebates during liquidation events, and introduces the Hover Rewards Program, a unique fee distribution model. This forward-thinking approach enhances user engagement and incentivizes healthy protocol operations.
How Hover Works:
Users can deposit funds to earn yield or mark the deposit as collateral to borrow another asset. Hover pools these assets, determining the value of withdrawals based on a collateral factor (CF). This factor, such as 70% for WBTC, dictates the maximum amount that can be borrowed against the supplied collateral.
Loans on Hover are overcollateralized, ensuring users cannot borrow more than they deposit. The health factor, signaling the state of overcollateralized positions, guides users to maintain a safe ratio to avoid liquidation. Hover implements the Jump Rate Model for interest rates, incentivizing deposits and loan repayments beyond 80% market utilization.
Hover Tokenomics System:
Hover introduces three tokens — HOV, esHOV, and xHOV. HOV, the primary utility token, enables access to bonus features when staked. Staking HOV converts it into esHOV, offering additional benefits through the Hover Staking Program. Users opting for a KYC process can further convert esHOV into xHOV, participating in the Hover Rewards Program.
Hover Staking Program:
The Hover Staking Program includes borrowing and liquidation rebates, governance participation, and a fee distribution system. Users need to stake enough HOV to qualify for VIP Tiers, gaining access to exclusive benefits. Different tiers offer various advantages, fostering a rewarding experience for long-term users.
Governance and Hover Rewards:
Governance allows token holders to collectively vote on platform improvements, while the Hover Rewards Program distributes 33% of the protocol’s revenue to stakers who undergo KYC checks. This opt-in program ensures steady rewards for stakers, showcasing Hover’s commitment to user engagement and participation.
Hover’s innovative approach to tokenomics and governance is poised to redefine DeFi by offering a platform that not only provides liquidity but also creates a sustainable and inclusive ecosystem for its users. As Hover continues to develop, it stands as a beacon of innovation in the evolving DeFi landscape.
Useful resources:
Website: https://hover.market
Twitter: https://twitter.com/hover_market
Telegram: https://t.me/Hover_Market
