After an intense sprint over the last few months to deliver what we believe will be the most impactful product on MultiversX, we are thrilled to announce that USH will go live on the Public Mainnet on March 3rd.

A countdown has started on our website to track the time remaining, and we encourage everyone to prepare for this pivotal launch.

Before diving into the key aspects of this announcement, we want to clarify the launch timeline.

While USH is fully prepared for deployment on the Mainnet, we experienced a slight delay due to the development of Booster V2.

To bring Booster V2 to life, an integration with xExchange was required. This integration involved changes to the xExchange smart contracts and presented significant complexity, requiring additional time for the xExchange team to ensure everything functioned correctly.

Booster V2 relied on this integration, as without it, users staking LP tokens via external smart contracts (such as Booster V2 in our case) would no longer earn rewards generated through Energy. After working very closely with xExchange team which was very responsive, we are now pleased to announce that the integration has been successfully completed, and Booster V2 development is now fully finalized.

However, while an initial audit of Booster V2 was conducted prior to the final integration, our standard procedure mandates that all code be re-audited before release. A new audit of the updated code, reflecting the recent integration, is currently underway with Arda and is expected to conclude by 15 February.

Updated Timeline Following the Delay:

• 31 January: xExchange will deploy all updates on Mainnet, requiring peer review and testing by our team.

• Audit Phase: The ongoing audit is set to conclude by 15 February.

• Review & Fixes: At least one week will be dedicated to reviewing audit findings and implementing any required fixes.

• Final Deployment: An additional week will be reserved for deploying all protocols to Mainnet, ensuring full readiness for the 3rd of March, when community participation begins.

We appreciate everyone’s understanding and patience!

Moving forward, here’s what you should do to ensure you’re ready for the launch:

• If you haven’t staked EGLD through Hatom yet, we recommend planning ahead. Unstaking EGLD requires a 10-day cooldown period, so make sure your EGLD is ready before the Mainnet release. However, you can still earn staking rewards by holding your assets as sEGLD, even if you initiate the unstaking process early.

• For those already using our Liquid Staking Module, no action is required; your sEGLD can be used directly in the Isolated Pools to mint USH when the protocol launches.

• To mint USH with TAO, bridge your assets to the MultiversX ecosystem via the TAO Bridge: http://wtao.com

Why Participation Matters?

Participation in this launch is critical, as deep liquidity will create a robust ecosystem that drives adoption and solidifies the infrastructure we’ve built.

USH will serve as the backbone for existing and upcoming DeFi projects on MultiversX, paving the way for mass onboarding and aligning with MultiversX’s foundational vision. The DeFi primitives we’ve developed together over the years will support the ecosystem’s acceleration phase, and it’s up to all of us to engage and help shape the future of our chain.

One of the most important steps is to provide liquidity by pairing USH with your preferred assets, whether stablecoins (e.g., USDT, USDC) or volatile assets (e.g., EGLD).

You’ll be able to stake your LP tokens on Hatom to earn higher yields, while simultaneously earning trading fees and DEX farming incentives, all while contributing to USH’s stability.

In addition to USH, Booster V2 will also debut on the Mainnet, bringing enhanced capital efficiency, improved yield opportunities, and a stronger role for HTM in driving fairer revenue distribution for all Hatom users. While Booster V1 served as a foundational prototype, V2 will transform the landscape into a competitive battleground for maximizing yields.

Here is a quick recap of both products and what you can expect:

Hatom USD (USH)

USH is the first native and decentralized stablecoin designed to address one of the biggest challenges in the MultiversX ecosystem: the lack of stablecoin liquidity, which undermines our sovereignty.

Currently, liquidity is mainly sourced from wrapped stable assets, with limited on-chain opportunities for users. USH seeks to resolve these issues by introducing a transparent and robust over-collateralized stablecoin.

This innovation not only tackles liquidity constraints but also unlocks new yield and arbitrage opportunities for everyone while driving increased on-chain activity. Enhanced activity and demand could also potentially pave the way for the integration of native centralized stablecoins, provided on-chain metrics improve and become more attractive to such entities.

USH relies on multiple Facilitators that ensure its minting and burning, each one of them with its distinct features:

Lending Protocol

USH can be minted directly through the Hatom Lending Protocol using any supported collateral at a fixed rate, with minting rates determined by the discount factor of each asset. More liquid and stable assets offer better rates, providing users with flexibility and cost efficiency.

The current minting rates are as follows:

• Wrapped USDC: 10%

• Wrapped USDT: 10%

• Wrapped BTC: 15%

• Wrapped ETH: 15%

• xMoney: 15%

• HTM: 15%

• MEX: 15%

During the initial phase, minting USH through the Lending Protocol will exclude EGLD, sEGLD, wTAO, and swTAO, as these assets are exclusively supported within the Isolated Pools Facilitator. However, future iterations are planned to expand the Facilitator's capabilities to include sEGLD and swTAO.

Since Hatom's deployment, the high demand for stablecoin liquidity in the ecosystem has caused lending and borrowing APYs to frequently exceed 25% for both USDC and USDT.

With the introduction of USH, a significant market shift is anticipated:

• Borrowers are expected to transfer their USDC and USDT debts into USH to benefit from more favorable rates.

• Suppliers may borrow USH and swap it for USDC or USDT to take advantage of higher lending APYs in those markets.

To ensure a smooth deployment of USH, borrowing APYs will be dynamically managed for both USDC and USDT during the initial launch phase to achieve an optimal balance.

This approach aims to maximize protocol revenues while maintaining the competitiveness and appeal of USH borrowing. Once this balance is achieved, borrowing interest rates will remain fixed at the specified rates, unless governance decides otherwise based on market dynamics, as seen on other chains.

This adjustment period is expected to last only a few days after the Public Mainnet launch. Arbitrage opportunities between the USDC/USDT money markets and USH Facilitators are anticipated to resolve quickly, leading to a natural equilibrium that stabilizes borrowing rates.

Isolated Pools

Through the Isolated Pools Facilitator, users can now leverage their assets and mint USH without paying any minting fees, regardless of the amount minted. This innovative approach was designed to provide users with increased opportunities and enable more efficient DeFi strategies.

This Facilitator supports EGLD and wTAO as primary collateral but also allows users to supply their liquid staking derivatives, sEGLD and swTAO, directly.

When these derivatives are deposited, the protocol automatically converts their value into the corresponding native tokens ( EGLD or wTAO) at the prevailing rate at the time of deposit. This conversion ensures users benefit from stable liquidity while the protocol generates rewards on the provided collateral through Liquid Staking and the Lending Protocol.

In addition to the two primary facilitators available to all users, we have developed Partners Isolated Pools to enhance USH stability and create more arbitrage opportunities. These pools are exclusively accessible to Hatom’s whitelisted partners.

Through this Facilitator, partners can mint USH with the condition that they pair it with their native tokens and provide liquidity on exchanges. This not only deepens on-chain liquidity for USH but also strengthens liquidity for their native tokens, reducing reliance on EGLD prices and fostering independent markets for their assets.

We are excited to announce the first projects leveraging this Facilitator to strengthen their ecosystems:

• xExchange: Creating the USH-MEX LP, with an LP size of $400k

• Foxsy: Creating the USH-FOXY LP, with an LP size of $300k

• xMoney: Creating the USH-UTK LP, with an LP size of $100k

• Ashswap: Creating the USH-ASH LP, with an LP size of $100k

According to our latest estimates, the supply and minting cap for our partners will be as follows:

• xExchange: $200k USH mint cap $1M MEX supply cap

• Foxsy: $150k USH mint cap $750k Foxsy supply cap

• xMoney: $50k USH mint cap $250k UTK supply cap

• Ashswap: $50k USH mint cap $250k ASH supply cap

Partners can mint USH at a 0% minting rate through this Facilitator; however, the minted USH must remain over-collateralized at all times.

Accounts that fall below healthy collateralization levels will be subject to liquidation. As outlined above, the supply and minting cap for each partner is fixed and predefined based on their existing liquidity and specific risk parameters, ensuring a highly conservative approach. Any adjustments to these parameters will require governance approval.

Another facilitator created exclusively for our partners is the Stablecoin Facilitator, a private mechanism designed specifically for whitelisted partners. It enables them to mint USH by depositing USDC or USDT at a 1:1 ratio. The deposited stablecoins are used to provide liquidity on exchanges, helping partners build more robust and efficient stable liquidity pools. This Facilitator ensures smooth and rapid on-chain arbitrage opportunities, enhancing the overall stability of the ecosystem.

Currently, this Facilitator is exclusively whitelisted to the MultiversX Foundation and the Ashswap team, as they manage the majority of the existing USDC-USDT liquidity pools. This setup facilitates the transition to USH-USDC and USH-USDT liquidity pairs, significantly increasing liquidity from day one and establishing a strong foundation for USH’s adoption.

All the facilitators' metrics will be available on the Market page, giving full insights and transparency about every aspect of USH backing.

USH Staking Module

The USH Staking Module serves as the utility hub of the USH ecosystem. Users can provide liquidity for any USH trading pair on supported exchanges, and then stake their LP or Farm tokens in this module to earn passive yield on their positions. By incentivizing liquidity provision and staking, this module ensures deep and sustainable liquidity for USH across multiple exchanges, fostering a thriving ecosystem for arbitrage and trading.

All rewards are distributed directly in HTM, with yields sourced organically from the revenue generated by USH’s various Facilitators. These rewards are allocated and subject to the Booster in the USH Staking Module.

The USH Staking Module introduces a tiered yield structure designed to accommodate diverse user preferences while incentivizing early participation:

• Staking APY: Enables users to earn passive income on their holdings without requiring HTM staking in the Booster.

• Base Booster APY: Achieved by staking HTM in the Booster, equivalent to a certain percentage of the total dollar value of your LP/Farm tokens.

• Extra Booster APY: Unlocked by staking HTM above the Base Booster threshold. This yield is distributed proportionally based on the size of your HTM stake and the liquidity you have deposited.

To drive immediate growth of HTM at launch while ensuring the smooth adoption of USH LPs, the Staking APY will follow a phased deployment similar to Booster V1 during Hatom’s inception.

Initially, a portion of rewards will be distributed without requiring HTM staking, providing an easy entry point for new participants. However, this phase will transition rapidly, with rewards without HTM staking being deliberately limited and phased out shortly after launch.

This accelerated transition ensures that participants are encouraged to acquire HTM early, driving its adoption and allowing users to quickly experience its full utility and benefits. By the end of this brief introductory phase, all USH Staking rewards will be tied to HTM staking through the Booster, establishing HTM as the cornerstone of the system.

For participants who do not yet hold HTM, this early system is designed to also help them accumulate it. The protocol leverages its revenue to purchase HTM directly from the open market before distributing it as rewards in the Staking Module. This mechanism supports HTM’s market value from the outset while enabling new users to build their initial HTM holdings through participation and use it to access more yields.

As users rapidly accumulate HTM and realize its yield-generating potential, they will be fully equipped to take advantage of the advanced incentives offered in Booster V2.

The Yields Potential

The yield generated through the USH Staking Module will primarily depend on three key factors: the amount of USH minted and deposited in the Staking Module, the total collateral in the Isolated Facilitator, and the borrowed amount in the Lending Facilitator.

We are expecting strong community participation, and if we consider a scenario focused solely on the Isolated Pools, where the community increases the total EGLD deposited in the Isolated Pools to 1 million, at the current price of $28.50 per EGLD, this would generate approximately $1,852,500 in incentives to be distributed.

If we consider moderate leverage, with an average of 30% Borrow Limit Utilization, and 50% of the USH minted is staked in the Staking Hub, the projected yields would result in a total APR of ~58% on staked USH and ~29% on the total value of the staked LP tokens.

This outcome is based on the total revenue generated relative to the value staked in the Staking Module. The distribution of yields will be allocated across various liquidity pools based on the most critical liquidity to be incentivized. Additionally, the Booster V2 logic will optimize this distribution, resulting in even higher APRs for accounts with the highest booster participation.

USH Airdrop

We’re excited to announce that a clear plan for the USH Airdrop distribution is in place. Following the USH Public Mainnet launch and once the system has stabilized, we’ll provide all the details on how the distribution will proceed.

USH Integrations

As USH establishes itself as the cornerstone of stable liquidity within the MultiversX ecosystem, we are thrilled to announce its integration with xPortal Cards, extending its utility far beyond on-chain DeFi opportunities.

With this integration, users can now:

• Supply EGLD to keep exposure to its value.

• Mint USH and use it for daily expenses through xPortal Cards.

• When EGLD increases in price, repay the loan to unlock and access the appreciated value of your EGLD.

This seamless integration enables users to top up their xPortal Cards with USH, facilitating transitions to off-chain spending and bridging blockchain with everyday finance. By expanding USH's real-world utility, this feature positions it as a key player in driving mainstream adoption within the MultiversX ecosystem.

We are actively developing an on-ramp for USH within our dApp, enabling users to purchase USH with credit cards. This feature simplifies access to the ecosystem, empowering both new and experienced users to generate passive income without prior experience in using decentralized exchanges.

These integrations mark the start of USH's journey toward mainstream adoption, as we continue to showcase its versatility and unlock innovative use cases within and beyond the MultiversX ecosystem.

A Glimpse of the Future: The Potential of USH Proxy

We are thrilled to introduce an incredible new facilitator, USH Proxy, built on the resilient infrastructure we’ve meticulously developed over the years at Hatom. This groundbreaking module will power even more innovative DeFi primitives and revolutionize the way users interact with DeFi.

Initially introduced as Hatom Pulse in a previous update, the concept of USH Proxy has been refined and optimized to deliver a highly efficient and robust strategy. This strategy can enhance the yield generation of all our products, including the Lending Protocol, Liquid Staking, and USH in an unprecedented way, regardless of the TVL.

Over the years, we’ve observed numerous lending protocols experimenting with creative approaches to advance DeFi and generate yield. However, despite these efforts, a critical gap remains: capital efficiency. Many protocols leave large portions of assets underutilized, failing to generate meaningful returns for their users.

A key flaw in existing systems is the inefficiency of supplied liquidity on lending protocols. The most frequently supplied assets, such as sEGLD, stETH, and WBTC, often go underutilized because borrowing interest-bearing tokens is inherently challenging.

These tokens accrue yield not only from borrowing activities but also from their intrinsic properties, making them difficult to integrate into traditional borrowing frameworks. As a result, significant portions of TVLs fail to generate revenue for protocols and are primarily used for stablecoin borrowing or leveraged liquid staking strategies.

On many other chains, base lending yields are notably low, often lingering around 0.01% to 0.05% for users supplying popular assets such as stETH or WBTC to Money Markets. This inefficiency results in substantial portions of TVL being underutilized, leaving users with minimal returns on their supplied assets.

USH Proxy addresses this inefficiency by optimizing yields on behalf of users without touching their liquidity, enabling them to earn significantly higher returns while still accessing their usual borrowing activities.

Before explaining this strategy, let’s delve further into Ethena’s delta-neutral strategy and what this promising venture has achieved, while also noting its major drawback.

Ethena created USDe, a stablecoin pegged to the US dollar, using a delta-neutral approach that eliminates exposure to ETH price volatility without requiring over-collateralization. ETH is deposited as collateral and secured through a trusted custodian, ensuring transparency and protection against misuse.

To neutralize price risk, Ethena open a short position on ETH using perpetual futures or other derivatives. This hedges the collateral's value, as gains or losses in the ETH price are offset between the long (collateral) and short (derivative) positions, locking in an instant dollar value.

With this balance, the protocol can confidently mint USDe while maintaining a stable value in USD. The system also incorporates yield opportunities such as positive funding rates from derivatives and potential staking yields from collateralized ETH.

That being said, we can view Ethena as a decentralized USDC rather than DAI, because users lose exposure to their volatile assets when acquiring it.

USH Proxy Facilitator is built on a similar delta-neutral approach. For example, let’s assume a user supplies $1,000 in sEGLD, earning 0.01%, and borrows $300 of USDC at 8%. When the user triggers USH Proxy, the protocol mints $1,000 worth of USH and uses it to purchase EGLD or ETH.

The EGLD or ETH is then liquid staked and shorted via a delta-neutral strategy, either through custodians (like Ethena) or via promising on-chain platforms such as Hyperliquid (once they have proven their reliability and withstood the test of time).

The user’s position isn’t affected or linked to that hedge; this is why we call it Proxy. The user simply triggers it and closes it upon repayment and removal of the supplied tokens from the protocol. Because the protocol itself cannot open this position alone, it’s the user who approves the process.

The yields coming from staking rewards and funding rates are redistributed back to the user on the supply side, subject eventually to the Booster. If funding rates turn negative, the position can be immediately closed, and the exact same initial USD value from the delta-neutral position is converted back to USH (filling up the LPs on DEXes again).

Here’s the beauty of USH Proxy:

• The user’s position remains unaffected and independent of the delta-neutral strategy. The protocol cannot open or close the position without the user’s explicit approval. The user triggers and closes the Proxy when they repay their loan and withdraw their supplied tokens.

• Any yield generated from staking rewards or positive funding rates is redistributed directly to the user’s supply side. These rewards are also subject to the Booster, significantly amplifying user incentives, which were initially minimal for unborrowable supplied assets.

• The USH used to create the hedge is always maintained, and the same amount that was taken from the on-chain liquidity pools is injected back once the user decides to close the strategy.

• If the funding rates for the short position ever turn negative (which rarely happens), the position can be immediately closed or switched to other low-risk strategies like farming on-chain T-bond rates. If the governance decides otherwise, the USD value from the delta-neutral position can always be converted back to USH, replenishing liquidity pools on decentralized exchanges and only reducing yields to end users.

• Trading fees and adoption around USH can grow at an unprecedented rate, expanding the entire ecosystem exponentially, especially as it evolves cross-chain.

In essence, Ethena addresses the creation of a decentralized stablecoin, but USH Proxy takes it a step further by transforming inefficient collateral into a powerful yield-generating tool while preserving user autonomy and asset exposure. This is just the beginning, as Proxy has the potential to optimize yields across a wide range of protocols.

While this post is only meant to educate our community about the general concept, the yields generated will be used to incentivize other aspects crucial for the strategy’s continued growth:

• Liquidity Providers: A portion of the revenue is allocated to incentivize key liquidity pools (e.g., USH-USDC), fostering deep liquidity and efficient trading.

• Arbitrageurs: Another portion rewards arbitrageurs for maintaining price stability and balancing liquidity across pools.

• Lending Protocol Suppliers: The remaining revenue boosts the supply APY for depositors who activate the Proxy.

The potential of a product like USH Proxy is immense. While its debut will happen on MultiversX, this product could easily attract participants beyond the ecosystem. For instance, partnerships with Eigenlayer could enable vaults where ETH restakers deposit their assets in the Lending Protocol and activate USH Proxy to boost yields, or even integrate with BTC restaking protocols like Pell or Babylon.

We have been dedicating a team to R&D for almost three months, conducting multiple studies and engaging in discussions with custodians to design our protocol. If you grasp the overall concept, you’ll see that the next crucial step lies in creating strong incentives for arbitrageurs to continuously close any price gaps while the underlying liquidity farms funding rates for users. This is precisely where our current R&D efforts are focused.

Continuing in that spirit, you’d have guessed it, but USH Proxy will also pave the way for USH V2 and Hatom LST V2, where USH will allow users to keep their staking rewards from sEGLD or swTAO while minting USH for free and allowing Proxy to incentivize the staking module.

For Liquid Staking users, this will also boost their returns, as sEGLD will not only earn staking rewards but also generate yields from funding rates. These opportunities highlight why we believe USH is destined to transcend being just a Hatom product: it will evolve into a comprehensive infrastructure solution that other protocols can leverage to build upon its facilitators.

To achieve this, we are developing a website with an experience similar to Hatom’s, as our goal is to establish USH as a standalone product within the broader crypto space. One protocol leveraging USH products will be Soul Protocol, but unlike Hatom’s approach, Soul will use USH in a cross-chain manner.

Booster V2

The Booster V2 is a pivotal upgrade in the Hatom ecosystem, designed to maximize user yields and enhance the utility of HTM tokens. It allows users to stake HTM tokens as well as HTM-related assets, including LP tokens, Farm tokens, Dual Farm tokens, and even the staked version of HTM on xExchange. This flexibility enables users to boost their positions and unlock competitive returns while reinforcing the protocol’s sustainability.

Booster V2 also removes the 10% staking cap from Booster V1, allowing for more competitive staking. The more HTM a user stakes, the higher their potential rewards, creating a dynamic and engaging mechanism that incentivizes deeper participation across the ecosystem.

The Booster V2 incorporates a two-tiered APY system to reward participants:

• Base Booster APY: This is achieved by staking a certain percentage of the value of your collateral supplied to the protocol as HTM, and it provides a consistent yield accessible to all users who meet the staking threshold. The final metrics regarding the percentage required will be provided at the launch of USH on the Mainnet.

• Extra Booster APY: Users who stake above the required threshold for the Base Booster APY unlock additional rewards. This yield is distributed competitively, based on the amount staked relative to other participants, offering higher returns for greater contributions.

Hatom Ecosystem now features three separate Booster modules in its different products:

• Lending Main Pool Booster

• Lending USH Pool Booster

• USH Staking Module Booster

Each Booster operates independently, requiring separate HTM or HTM-related tokens for staking. To streamline the user experience, Booster V2 introduces a migration function, enabling users to transfer their staked tokens between Boosters without triggering a cooldown period.

With these enhancements, Booster V2 establishes itself as a cornerstone of the Hatom ecosystem, offering competitive yields and driving long-term growth through its innovative design. These improvements are essential for allowing users to manage their Booster with greater precision, rather than relying on an averaged approach across different protocol modules, which could lead to inefficiencies and potential shortfalls for users.

Exciting Features Coming to Hatom

As mentioned above, USH Proxy will come to life with the release of USH V2, where at the same time, our protocols will undergo a complete revamp, and the architecture of some products will be fundamentally restructured. As part of this transformation, we are considering merging the Isolated Pools with the Lending Protocol to create a more streamlined and efficient user experience.

The upcoming USH V2 introduces a powerful new feature to the USH ecosystem, enabling users to customize key parameters when minting USH, such as their desired minting interest rate and LTV ratio.

The minting interest rate, which represents the fee users are willing to pay for minting, directly influences their position within the Redemption hierarchy. The interest rate a user sets determines the priority of their USH for redemption, with higher rates and lower LTVs resulting in a better ranking in the USH redemption mechanism, ensuring those willing to pay a premium and mint at a lower LTV gain a higher protection from redemption.

It will essentially be a dynamic ratio decided by the community, instead of using a fixed rate managed by the DAO, we will let the free market determine the APY users want to pay for any money market.

Gauges and Emissions

With Governance ready to be deployed, enabling our token holders to take control of the protocol, we are also introducing Gauges and Emissions for the Booster. This feature empowers our community to directly influence protocol incentives. Governance participants will be able to vote on how rewards are allocated to each money market and determine the amount each market receives, ensuring the protocol evolves in alignment with community priorities.

Moving forward after this implementation, there will be a weekly snapshot period, where everyone will be able to choose the allocation of emissions. As per standard procedures in Governance, the voters will be required to stake HTM in order to be entitled to take any governance decision.

This mechanism fosters a competitive and dynamic ecosystem, where markets with the most demand can attract liquidity by incentivizing participants. It also creates a recurring opportunity for the community to align rewards with evolving market conditions, ensuring that incentives are allocated where they will have the greatest impact.

Analytics

We are excited to announce that the official analytics page for the Hatom Ecosystem will launch alongside USH’s debut on the Public Mainnet. This page will offer users a comprehensive view of both current and historical data across various metrics, providing deeper insights into the protocol’s performance and evolution over time.

The Analytics page allows users to delve into the past performance of assets deposited in the Lending Protocol, providing insights such as average APYs, available liquidity within the protocol, the number of participating addresses, and more. This comprehensive data empowers users to make informed decisions and track the protocol’s evolution in real-time.

In addition, we are introducing a Transparency Page, dedicated to providing detailed public tracking for each USH Facilitator. This feature will display all relevant data, including the collateralization levels and the status of each Facilitator's pool. All of this is done to enhance the transparency of our products, but also as a way for users to monitor the most important metrics in the ecosystem.

As we continue to refine and expand Hatom’s products, we’re excited to announce that several incremental updates are in the pipeline for our products. One of these features is the introduction of Instant Unstaking for our Liquid Staking users, which has been part of our roadmap for months. However, this was temporarily postponed as we prioritized the development of USH and Booster V2, but it will be introduced shortly after the launch of these.

We’ve always been deliberate in our approach, focusing on innovation that delivers real value to our users and the ecosystem as a whole. Some features commonly found in other protocols have been intentionally deprioritized for valid reasons:

Isolated Money Markets

Isolated Money Markets are often promoted as a tool to contain risk within specific asset pairs by preventing contagion across the broader protocol. One key issue with Isolated Money Markets is liquidity fragmentation.

By separating assets into isolated pools, the overall borrowing and lending activity is constrained, reducing the protocol's ability to optimize capital utilization. Additionally, fragmented liquidity diminishes the ability to generate competitive APYs, which can discourage user participation and negatively impact TVL.

For Hatom, the core goal is to foster a seamless and efficient ecosystem, and introducing Isolated Money Markets would only create operational noise without substantial benefits. Even on leading platforms like Aave, Isolated Markets have struggled to achieve widespread adoption, as they dilute liquidity and create inefficiencies rather than enhancing protocol performance.

Flash Loans

Flash Loans are an intriguing concept, enabling uncollateralized borrowing within a single transaction. While they have introduced innovative use cases like arbitrage and DeFi composability, they have also been the primary attack vector in some of the largest DeFi exploits to date.

The vulnerability of Flash Loans lies in their ability to manipulate market prices and exploit protocol inefficiencies, making them a significant security risk. Given the nascent state of DeFi on MultiversX, the infrastructure required to support Flash Loans securely and effectively is not yet mature. Furthermore, Flash Loans would currently only be feasible on Shard 1, limiting their utility across the MultiversX ecosystem.

LP Money Markets

While LP Money Markets may appear attractive on the surface, they carry inherent risks due to the volatility and impermanent loss of these positions. These risks can lead to instability and create vulnerabilities for both the protocol and its users (this is why established protocols like Aave removed them). Moreover, LP Money Markets often struggle with low user adoption due to their complexity and the need for participants to manage additional risks. Given these challenges, Hatom has chosen to avoid incorporating LP Money Markets to maintain a secure and robust ecosystem.

We’re confident that our suite of products will be the key factor in differentiating ourselves from the competition once the migration to other chains starts. All our protocols will be fully usable on any chain we deploy from day one, giving Hatom the edge to offer better yields than other protocols and attract instant mindshare. Besides this, Hatom will work closely with Soul Protocol, integrating into Soul’s ecosystem and connecting with top lending protocols such as Aave, Compound, and Morpho to enable users to perform cross-chain and cross-protocol lending and borrowing.

As the integration with Soul Protocol requires cross-chain messaging endpoints to be deployed in real-time, we are excited to announce that Hatom will allocate resources to support the integration of Layerzero with the ecosystem. This marks the first step toward uniting Hatom and Soul Protocol. Layerzero will serve as the initial endpoint connecting both protocols in this process, with Pi Squared integrated alongside other cross-chain messaging layers

Additionally, we can envision Soul Protocol leveraging USH Facilitators to optimize yields across established money markets such as Aave and Compound. The future is truly exciting!

We remain deeply committed to the principles of transparency, decentralization, and community empowerment. As we continue to innovate and expand, we pledge to open-source all our protocols in due time, just as we have already done with our Liquid Staking solution. Our ultimate goal is to create a truly decentralized ecosystem where Hatom Labs is no longer the main contributor to the protocol, allowing it to scale, thrive, and grow independently of us.

Once the ecosystem has matured and reached sufficient stability, we are committed to making all our primitives immutable and no longer upgradeable, ensuring the integrity and permanence of our protocols. Together with our community, we are building not just for the present, but for a sustainable and decentralized future.

We’ve come a long way on this journey, and it’s incredibly rewarding to see our products making a significant impact on the ecosystem. Our determination remains stronger than ever, and we are committed to driving adoption, building new financial primitives, and advancing the DeFi landscape.

An updated post detailing our vision and outlining the roadmap ahead will be shared soon, providing the community with clarity on the next steps in our journey. In the meantime, we want to extend our heartfelt gratitude to our incredible community, the partners who played a pivotal role in the launch of USH, and the entire Hatom Team whose tireless efforts brought these innovative products to life.

Together, we are going to bring the change we want to see in the world!

After an intense sprint over the last few months to deliver what we believe will be the most impactful product on MultiversX, we are thrilled to announce that USH will go live on the Public Mainnet on March 3rd.

A countdown has started on our website to track the time remaining, and we encourage everyone to prepare for this pivotal launch.

Before diving into the key aspects of this announcement, we want to clarify the launch timeline.

While USH is fully prepared for deployment on the Mainnet, we experienced a slight delay due to the development of Booster V2.

To bring Booster V2 to life, an integration with xExchange was required. This integration involved changes to the xExchange smart contracts and presented significant complexity, requiring additional time for the xExchange team to ensure everything functioned correctly.

Booster V2 relied on this integration, as without it, users staking LP tokens via external smart contracts (such as Booster V2 in our case) would no longer earn rewards generated through Energy. After working very closely with xExchange team which was very responsive, we are now pleased to announce that the integration has been successfully completed, and Booster V2 development is now fully finalized.

However, while an initial audit of Booster V2 was conducted prior to the final integration, our standard procedure mandates that all code be re-audited before release. A new audit of the updated code, reflecting the recent integration, is currently underway with Arda and is expected to conclude by 15 February.

Updated Timeline Following the Delay:

• 31 January: xExchange will deploy all updates on Mainnet, requiring peer review and testing by our team.

• Audit Phase: The ongoing audit is set to conclude by 15 February.

• Review & Fixes: At least one week will be dedicated to reviewing audit findings and implementing any required fixes.

• Final Deployment: An additional week will be reserved for deploying all protocols to Mainnet, ensuring full readiness for the 3rd of March, when community participation begins.

We appreciate everyone’s understanding and patience!

Moving forward, here’s what you should do to ensure you’re ready for the launch:

• If you haven’t staked EGLD through Hatom yet, we recommend planning ahead. Unstaking EGLD requires a 10-day cooldown period, so make sure your EGLD is ready before the Mainnet release. However, you can still earn staking rewards by holding your assets as sEGLD, even if you initiate the unstaking process early.

• For those already using our Liquid Staking Module, no action is required; your sEGLD can be used directly in the Isolated Pools to mint USH when the protocol launches.

• To mint USH with TAO, bridge your assets to the MultiversX ecosystem via the TAO Bridge: http://wtao.com

Why Participation Matters?

Participation in this launch is critical, as deep liquidity will create a robust ecosystem that drives adoption and solidifies the infrastructure we’ve built.

USH will serve as the backbone for existing and upcoming DeFi projects on MultiversX, paving the way for mass onboarding and aligning with MultiversX’s foundational vision. The DeFi primitives we’ve developed together over the years will support the ecosystem’s acceleration phase, and it’s up to all of us to engage and help shape the future of our chain.

One of the most important steps is to provide liquidity by pairing USH with your preferred assets, whether stablecoins (e.g., USDT, USDC) or volatile assets (e.g., EGLD).

You’ll be able to stake your LP tokens on Hatom to earn higher yields, while simultaneously earning trading fees and DEX farming incentives, all while contributing to USH’s stability.

In addition to USH, Booster V2 will also debut on the Mainnet, bringing enhanced capital efficiency, improved yield opportunities, and a stronger role for HTM in driving fairer revenue distribution for all Hatom users. While Booster V1 served as a foundational prototype, V2 will transform the landscape into a competitive battleground for maximizing yields.

Here is a quick recap of both products and what you can expect:

Hatom USD (USH)

USH is the first native and decentralized stablecoin designed to address one of the biggest challenges in the MultiversX ecosystem: the lack of stablecoin liquidity, which undermines our sovereignty.

Currently, liquidity is mainly sourced from wrapped stable assets, with limited on-chain opportunities for users. USH seeks to resolve these issues by introducing a transparent and robust over-collateralized stablecoin.

This innovation not only tackles liquidity constraints but also unlocks new yield and arbitrage opportunities for everyone while driving increased on-chain activity. Enhanced activity and demand could also potentially pave the way for the integration of native centralized stablecoins, provided on-chain metrics improve and become more attractive to such entities.

USH relies on multiple Facilitators that ensure its minting and burning, each one of them with its distinct features:

Lending Protocol

USH can be minted directly through the Hatom Lending Protocol using any supported collateral at a fixed rate, with minting rates determined by the discount factor of each asset. More liquid and stable assets offer better rates, providing users with flexibility and cost efficiency.

The current minting rates are as follows:

• Wrapped USDC: 10%

• Wrapped USDT: 10%

• Wrapped BTC: 15%

• Wrapped ETH: 15%

• xMoney: 15%

• HTM: 15%

• MEX: 15%

During the initial phase, minting USH through the Lending Protocol will exclude EGLD, sEGLD, wTAO, and swTAO, as these assets are exclusively supported within the Isolated Pools Facilitator. However, future iterations are planned to expand the Facilitator's capabilities to include sEGLD and swTAO.

Since Hatom's deployment, the high demand for stablecoin liquidity in the ecosystem has caused lending and borrowing APYs to frequently exceed 25% for both USDC and USDT.

With the introduction of USH, a significant market shift is anticipated:

• Borrowers are expected to transfer their USDC and USDT debts into USH to benefit from more favorable rates.

• Suppliers may borrow USH and swap it for USDC or USDT to take advantage of higher lending APYs in those markets.

To ensure a smooth deployment of USH, borrowing APYs will be dynamically managed for both USDC and USDT during the initial launch phase to achieve an optimal balance.

This approach aims to maximize protocol revenues while maintaining the competitiveness and appeal of USH borrowing. Once this balance is achieved, borrowing interest rates will remain fixed at the specified rates, unless governance decides otherwise based on market dynamics, as seen on other chains.

This adjustment period is expected to last only a few days after the Public Mainnet launch. Arbitrage opportunities between the USDC/USDT money markets and USH Facilitators are anticipated to resolve quickly, leading to a natural equilibrium that stabilizes borrowing rates.

Isolated Pools

Through the Isolated Pools Facilitator, users can now leverage their assets and mint USH without paying any minting fees, regardless of the amount minted. This innovative approach was designed to provide users with increased opportunities and enable more efficient DeFi strategies.

This Facilitator supports EGLD and wTAO as primary collateral but also allows users to supply their liquid staking derivatives, sEGLD and swTAO, directly.

When these derivatives are deposited, the protocol automatically converts their value into the corresponding native tokens ( EGLD or wTAO) at the prevailing rate at the time of deposit. This conversion ensures users benefit from stable liquidity while the protocol generates rewards on the provided collateral through Liquid Staking and the Lending Protocol.

In addition to the two primary facilitators available to all users, we have developed Partners Isolated Pools to enhance USH stability and create more arbitrage opportunities. These pools are exclusively accessible to Hatom’s whitelisted partners.

Through this Facilitator, partners can mint USH with the condition that they pair it with their native tokens and provide liquidity on exchanges. This not only deepens on-chain liquidity for USH but also strengthens liquidity for their native tokens, reducing reliance on EGLD prices and fostering independent markets for their assets.

We are excited to announce the first projects leveraging this Facilitator to strengthen their ecosystems:

• xExchange: Creating the USH-MEX LP, with an LP size of $400k

• Foxsy: Creating the USH-FOXY LP, with an LP size of $300k

• xMoney: Creating the USH-UTK LP, with an LP size of $100k

• Ashswap: Creating the USH-ASH LP, with an LP size of $100k

According to our latest estimates, the supply and minting cap for our partners will be as follows:

• xExchange: $200k USH mint cap $1M MEX supply cap

• Foxsy: $150k USH mint cap $750k Foxsy supply cap

• xMoney: $50k USH mint cap $250k UTK supply cap

• Ashswap: $50k USH mint cap $250k ASH supply cap

Partners can mint USH at a 0% minting rate through this Facilitator; however, the minted USH must remain over-collateralized at all times.

Accounts that fall below healthy collateralization levels will be subject to liquidation. As outlined above, the supply and minting cap for each partner is fixed and predefined based on their existing liquidity and specific risk parameters, ensuring a highly conservative approach. Any adjustments to these parameters will require governance approval.

Another facilitator created exclusively for our partners is the Stablecoin Facilitator, a private mechanism designed specifically for whitelisted partners. It enables them to mint USH by depositing USDC or USDT at a 1:1 ratio. The deposited stablecoins are used to provide liquidity on exchanges, helping partners build more robust and efficient stable liquidity pools. This Facilitator ensures smooth and rapid on-chain arbitrage opportunities, enhancing the overall stability of the ecosystem.

Currently, this Facilitator is exclusively whitelisted to the MultiversX Foundation and the Ashswap team, as they manage the majority of the existing USDC-USDT liquidity pools. This setup facilitates the transition to USH-USDC and USH-USDT liquidity pairs, significantly increasing liquidity from day one and establishing a strong foundation for USH’s adoption.

All the facilitators' metrics will be available on the Market page, giving full insights and transparency about every aspect of USH backing.

USH Staking Module

The USH Staking Module serves as the utility hub of the USH ecosystem. Users can provide liquidity for any USH trading pair on supported exchanges, and then stake their LP or Farm tokens in this module to earn passive yield on their positions. By incentivizing liquidity provision and staking, this module ensures deep and sustainable liquidity for USH across multiple exchanges, fostering a thriving ecosystem for arbitrage and trading.

All rewards are distributed directly in HTM, with yields sourced organically from the revenue generated by USH’s various Facilitators. These rewards are allocated and subject to the Booster in the USH Staking Module.

The USH Staking Module introduces a tiered yield structure designed to accommodate diverse user preferences while incentivizing early participation:

• Staking APY: Enables users to earn passive income on their holdings without requiring HTM staking in the Booster.

• Base Booster APY: Achieved by staking HTM in the Booster, equivalent to a certain percentage of the total dollar value of your LP/Farm tokens.

• Extra Booster APY: Unlocked by staking HTM above the Base Booster threshold. This yield is distributed proportionally based on the size of your HTM stake and the liquidity you have deposited.

To drive immediate growth of HTM at launch while ensuring the smooth adoption of USH LPs, the Staking APY will follow a phased deployment similar to Booster V1 during Hatom’s inception.

Initially, a portion of rewards will be distributed without requiring HTM staking, providing an easy entry point for new participants. However, this phase will transition rapidly, with rewards without HTM staking being deliberately limited and phased out shortly after launch.

This accelerated transition ensures that participants are encouraged to acquire HTM early, driving its adoption and allowing users to quickly experience its full utility and benefits. By the end of this brief introductory phase, all USH Staking rewards will be tied to HTM staking through the Booster, establishing HTM as the cornerstone of the system.

For participants who do not yet hold HTM, this early system is designed to also help them accumulate it. The protocol leverages its revenue to purchase HTM directly from the open market before distributing it as rewards in the Staking Module. This mechanism supports HTM’s market value from the outset while enabling new users to build their initial HTM holdings through participation and use it to access more yields.

As users rapidly accumulate HTM and realize its yield-generating potential, they will be fully equipped to take advantage of the advanced incentives offered in Booster V2.

The Yields Potential

The yield generated through the USH Staking Module will primarily depend on three key factors: the amount of USH minted and deposited in the Staking Module, the total collateral in the Isolated Facilitator, and the borrowed amount in the Lending Facilitator.

We are expecting strong community participation, and if we consider a scenario focused solely on the Isolated Pools, where the community increases the total EGLD deposited in the Isolated Pools to 1 million, at the current price of $28.50 per EGLD, this would generate approximately $1,852,500 in incentives to be distributed.

If we consider moderate leverage, with an average of 30% Borrow Limit Utilization, and 50% of the USH minted is staked in the Staking Hub, the projected yields would result in a total APR of ~58% on staked USH and ~29% on the total value of the staked LP tokens.

This outcome is based on the total revenue generated relative to the value staked in the Staking Module. The distribution of yields will be allocated across various liquidity pools based on the most critical liquidity to be incentivized. Additionally, the Booster V2 logic will optimize this distribution, resulting in even higher APRs for accounts with the highest booster participation.

USH Airdrop

We’re excited to announce that a clear plan for the USH Airdrop distribution is in place. Following the USH Public Mainnet launch and once the system has stabilized, we’ll provide all the details on how the distribution will proceed.

USH Integrations

As USH establishes itself as the cornerstone of stable liquidity within the MultiversX ecosystem, we are thrilled to announce its integration with xPortal Cards, extending its utility far beyond on-chain DeFi opportunities.

With this integration, users can now:

• Supply EGLD to keep exposure to its value.

• Mint USH and use it for daily expenses through xPortal Cards.

• When EGLD increases in price, repay the loan to unlock and access the appreciated value of your EGLD.

This seamless integration enables users to top up their xPortal Cards with USH, facilitating transitions to off-chain spending and bridging blockchain with everyday finance. By expanding USH's real-world utility, this feature positions it as a key player in driving mainstream adoption within the MultiversX ecosystem.

We are actively developing an on-ramp for USH within our dApp, enabling users to purchase USH with credit cards. This feature simplifies access to the ecosystem, empowering both new and experienced users to generate passive income without prior experience in using decentralized exchanges.

These integrations mark the start of USH's journey toward mainstream adoption, as we continue to showcase its versatility and unlock innovative use cases within and beyond the MultiversX ecosystem.

A Glimpse of the Future: The Potential of USH Proxy

We are thrilled to introduce an incredible new facilitator, USH Proxy, built on the resilient infrastructure we’ve meticulously developed over the years at Hatom. This groundbreaking module will power even more innovative DeFi primitives and revolutionize the way users interact with DeFi.

Initially introduced as Hatom Pulse in a previous update, the concept of USH Proxy has been refined and optimized to deliver a highly efficient and robust strategy. This strategy can enhance the yield generation of all our products, including the Lending Protocol, Liquid Staking, and USH in an unprecedented way, regardless of the TVL.

Over the years, we’ve observed numerous lending protocols experimenting with creative approaches to advance DeFi and generate yield. However, despite these efforts, a critical gap remains: capital efficiency. Many protocols leave large portions of assets underutilized, failing to generate meaningful returns for their users.

A key flaw in existing systems is the inefficiency of supplied liquidity on lending protocols. The most frequently supplied assets, such as sEGLD, stETH, and WBTC, often go underutilized because borrowing interest-bearing tokens is inherently challenging.

These tokens accrue yield not only from borrowing activities but also from their intrinsic properties, making them difficult to integrate into traditional borrowing frameworks. As a result, significant portions of TVLs fail to generate revenue for protocols and are primarily used for stablecoin borrowing or leveraged liquid staking strategies.

On many other chains, base lending yields are notably low, often lingering around 0.01% to 0.05% for users supplying popular assets such as stETH or WBTC to Money Markets. This inefficiency results in substantial portions of TVL being underutilized, leaving users with minimal returns on their supplied assets.

USH Proxy addresses this inefficiency by optimizing yields on behalf of users without touching their liquidity, enabling them to earn significantly higher returns while still accessing their usual borrowing activities.

Before explaining this strategy, let’s delve further into Ethena’s delta-neutral strategy and what this promising venture has achieved, while also noting its major drawback.

Ethena created USDe, a stablecoin pegged to the US dollar, using a delta-neutral approach that eliminates exposure to ETH price volatility without requiring over-collateralization. ETH is deposited as collateral and secured through a trusted custodian, ensuring transparency and protection against misuse.

To neutralize price risk, Ethena open a short position on ETH using perpetual futures or other derivatives. This hedges the collateral's value, as gains or losses in the ETH price are offset between the long (collateral) and short (derivative) positions, locking in an instant dollar value.

With this balance, the protocol can confidently mint USDe while maintaining a stable value in USD. The system also incorporates yield opportunities such as positive funding rates from derivatives and potential staking yields from collateralized ETH.

That being said, we can view Ethena as a decentralized USDC rather than DAI, because users lose exposure to their volatile assets when acquiring it.

USH Proxy Facilitator is built on a similar delta-neutral approach. For example, let’s assume a user supplies $1,000 in sEGLD, earning 0.01%, and borrows $300 of USDC at 8%. When the user triggers USH Proxy, the protocol mints $1,000 worth of USH and uses it to purchase EGLD or ETH.

The EGLD or ETH is then liquid staked and shorted via a delta-neutral strategy, either through custodians (like Ethena) or via promising on-chain platforms such as Hyperliquid (once they have proven their reliability and withstood the test of time).

The user’s position isn’t affected or linked to that hedge; this is why we call it Proxy. The user simply triggers it and closes it upon repayment and removal of the supplied tokens from the protocol. Because the protocol itself cannot open this position alone, it’s the user who approves the process.

The yields coming from staking rewards and funding rates are redistributed back to the user on the supply side, subject eventually to the Booster. If funding rates turn negative, the position can be immediately closed, and the exact same initial USD value from the delta-neutral position is converted back to USH (filling up the LPs on DEXes again).

Here’s the beauty of USH Proxy:

• The user’s position remains unaffected and independent of the delta-neutral strategy. The protocol cannot open or close the position without the user’s explicit approval. The user triggers and closes the Proxy when they repay their loan and withdraw their supplied tokens.

• Any yield generated from staking rewards or positive funding rates is redistributed directly to the user’s supply side. These rewards are also subject to the Booster, significantly amplifying user incentives, which were initially minimal for unborrowable supplied assets.

• The USH used to create the hedge is always maintained, and the same amount that was taken from the on-chain liquidity pools is injected back once the user decides to close the strategy.

• If the funding rates for the short position ever turn negative (which rarely happens), the position can be immediately closed or switched to other low-risk strategies like farming on-chain T-bond rates. If the governance decides otherwise, the USD value from the delta-neutral position can always be converted back to USH, replenishing liquidity pools on decentralized exchanges and only reducing yields to end users.

• Trading fees and adoption around USH can grow at an unprecedented rate, expanding the entire ecosystem exponentially, especially as it evolves cross-chain.

In essence, Ethena addresses the creation of a decentralized stablecoin, but USH Proxy takes it a step further by transforming inefficient collateral into a powerful yield-generating tool while preserving user autonomy and asset exposure. This is just the beginning, as Proxy has the potential to optimize yields across a wide range of protocols.

While this post is only meant to educate our community about the general concept, the yields generated will be used to incentivize other aspects crucial for the strategy’s continued growth:

• Liquidity Providers: A portion of the revenue is allocated to incentivize key liquidity pools (e.g., USH-USDC), fostering deep liquidity and efficient trading.

• Arbitrageurs: Another portion rewards arbitrageurs for maintaining price stability and balancing liquidity across pools.

• Lending Protocol Suppliers: The remaining revenue boosts the supply APY for depositors who activate the Proxy.

The potential of a product like USH Proxy is immense. While its debut will happen on MultiversX, this product could easily attract participants beyond the ecosystem. For instance, partnerships with Eigenlayer could enable vaults where ETH restakers deposit their assets in the Lending Protocol and activate USH Proxy to boost yields, or even integrate with BTC restaking protocols like Pell or Babylon.

We have been dedicating a team to R&D for almost three months, conducting multiple studies and engaging in discussions with custodians to design our protocol. If you grasp the overall concept, you’ll see that the next crucial step lies in creating strong incentives for arbitrageurs to continuously close any price gaps while the underlying liquidity farms funding rates for users. This is precisely where our current R&D efforts are focused.

Continuing in that spirit, you’d have guessed it, but USH Proxy will also pave the way for USH V2 and Hatom LST V2, where USH will allow users to keep their staking rewards from sEGLD or swTAO while minting USH for free and allowing Proxy to incentivize the staking module.

For Liquid Staking users, this will also boost their returns, as sEGLD will not only earn staking rewards but also generate yields from funding rates. These opportunities highlight why we believe USH is destined to transcend being just a Hatom product: it will evolve into a comprehensive infrastructure solution that other protocols can leverage to build upon its facilitators.

To achieve this, we are developing a website with an experience similar to Hatom’s, as our goal is to establish USH as a standalone product within the broader crypto space. One protocol leveraging USH products will be Soul Protocol, but unlike Hatom’s approach, Soul will use USH in a cross-chain manner.

Booster V2

The Booster V2 is a pivotal upgrade in the Hatom ecosystem, designed to maximize user yields and enhance the utility of HTM tokens. It allows users to stake HTM tokens as well as HTM-related assets, including LP tokens, Farm tokens, Dual Farm tokens, and even the staked version of HTM on xExchange. This flexibility enables users to boost their positions and unlock competitive returns while reinforcing the protocol’s sustainability.

Booster V2 also removes the 10% staking cap from Booster V1, allowing for more competitive staking. The more HTM a user stakes, the higher their potential rewards, creating a dynamic and engaging mechanism that incentivizes deeper participation across the ecosystem.

The Booster V2 incorporates a two-tiered APY system to reward participants:

• Base Booster APY: This is achieved by staking a certain percentage of the value of your collateral supplied to the protocol as HTM, and it provides a consistent yield accessible to all users who meet the staking threshold. The final metrics regarding the percentage required will be provided at the launch of USH on the Mainnet.

• Extra Booster APY: Users who stake above the required threshold for the Base Booster APY unlock additional rewards. This yield is distributed competitively, based on the amount staked relative to other participants, offering higher returns for greater contributions.

Hatom Ecosystem now features three separate Booster modules in its different products:

• Lending Main Pool Booster

• Lending USH Pool Booster

• USH Staking Module Booster

Each Booster operates independently, requiring separate HTM or HTM-related tokens for staking. To streamline the user experience, Booster V2 introduces a migration function, enabling users to transfer their staked tokens between Boosters without triggering a cooldown period.

With these enhancements, Booster V2 establishes itself as a cornerstone of the Hatom ecosystem, offering competitive yields and driving long-term growth through its innovative design. These improvements are essential for allowing users to manage their Booster with greater precision, rather than relying on an averaged approach across different protocol modules, which could lead to inefficiencies and potential shortfalls for users.

Exciting Features Coming to Hatom

As mentioned above, USH Proxy will come to life with the release of USH V2, where at the same time, our protocols will undergo a complete revamp, and the architecture of some products will be fundamentally restructured. As part of this transformation, we are considering merging the Isolated Pools with the Lending Protocol to create a more streamlined and efficient user experience.

The upcoming USH V2 introduces a powerful new feature to the USH ecosystem, enabling users to customize key parameters when minting USH, such as their desired minting interest rate and LTV ratio.

The minting interest rate, which represents the fee users are willing to pay for minting, directly influences their position within the Redemption hierarchy. The interest rate a user sets determines the priority of their USH for redemption, with higher rates and lower LTVs resulting in a better ranking in the USH redemption mechanism, ensuring those willing to pay a premium and mint at a lower LTV gain a higher protection from redemption.

It will essentially be a dynamic ratio decided by the community, instead of using a fixed rate managed by the DAO, we will let the free market determine the APY users want to pay for any money market.

Gauges and Emissions

With Governance ready to be deployed, enabling our token holders to take control of the protocol, we are also introducing Gauges and Emissions for the Booster. This feature empowers our community to directly influence protocol incentives. Governance participants will be able to vote on how rewards are allocated to each money market and determine the amount each market receives, ensuring the protocol evolves in alignment with community priorities.

Moving forward after this implementation, there will be a weekly snapshot period, where everyone will be able to choose the allocation of emissions. As per standard procedures in Governance, the voters will be required to stake HTM in order to be entitled to take any governance decision.

This mechanism fosters a competitive and dynamic ecosystem, where markets with the most demand can attract liquidity by incentivizing participants. It also creates a recurring opportunity for the community to align rewards with evolving market conditions, ensuring that incentives are allocated where they will have the greatest impact.

Analytics

We are excited to announce that the official analytics page for the Hatom Ecosystem will launch alongside USH’s debut on the Public Mainnet. This page will offer users a comprehensive view of both current and historical data across various metrics, providing deeper insights into the protocol’s performance and evolution over time.

The Analytics page allows users to delve into the past performance of assets deposited in the Lending Protocol, providing insights such as average APYs, available liquidity within the protocol, the number of participating addresses, and more. This comprehensive data empowers users to make informed decisions and track the protocol’s evolution in real-time.

In addition, we are introducing a Transparency Page, dedicated to providing detailed public tracking for each USH Facilitator. This feature will display all relevant data, including the collateralization levels and the status of each Facilitator's pool. All of this is done to enhance the transparency of our products, but also as a way for users to monitor the most important metrics in the ecosystem.

As we continue to refine and expand Hatom’s products, we’re excited to announce that several incremental updates are in the pipeline for our products. One of these features is the introduction of Instant Unstaking for our Liquid Staking users, which has been part of our roadmap for months. However, this was temporarily postponed as we prioritized the development of USH and Booster V2, but it will be introduced shortly after the launch of these.

We’ve always been deliberate in our approach, focusing on innovation that delivers real value to our users and the ecosystem as a whole. Some features commonly found in other protocols have been intentionally deprioritized for valid reasons:

Isolated Money Markets

Isolated Money Markets are often promoted as a tool to contain risk within specific asset pairs by preventing contagion across the broader protocol. One key issue with Isolated Money Markets is liquidity fragmentation.

By separating assets into isolated pools, the overall borrowing and lending activity is constrained, reducing the protocol's ability to optimize capital utilization. Additionally, fragmented liquidity diminishes the ability to generate competitive APYs, which can discourage user participation and negatively impact TVL.

For Hatom, the core goal is to foster a seamless and efficient ecosystem, and introducing Isolated Money Markets would only create operational noise without substantial benefits. Even on leading platforms like Aave, Isolated Markets have struggled to achieve widespread adoption, as they dilute liquidity and create inefficiencies rather than enhancing protocol performance.

Flash Loans

Flash Loans are an intriguing concept, enabling uncollateralized borrowing within a single transaction. While they have introduced innovative use cases like arbitrage and DeFi composability, they have also been the primary attack vector in some of the largest DeFi exploits to date.

The vulnerability of Flash Loans lies in their ability to manipulate market prices and exploit protocol inefficiencies, making them a significant security risk. Given the nascent state of DeFi on MultiversX, the infrastructure required to support Flash Loans securely and effectively is not yet mature. Furthermore, Flash Loans would currently only be feasible on Shard 1, limiting their utility across the MultiversX ecosystem.

LP Money Markets

While LP Money Markets may appear attractive on the surface, they carry inherent risks due to the volatility and impermanent loss of these positions. These risks can lead to instability and create vulnerabilities for both the protocol and its users (this is why established protocols like Aave removed them). Moreover, LP Money Markets often struggle with low user adoption due to their complexity and the need for participants to manage additional risks. Given these challenges, Hatom has chosen to avoid incorporating LP Money Markets to maintain a secure and robust ecosystem.

We’re confident that our suite of products will be the key factor in differentiating ourselves from the competition once the migration to other chains starts. All our protocols will be fully usable on any chain we deploy from day one, giving Hatom the edge to offer better yields than other protocols and attract instant mindshare. Besides this, Hatom will work closely with Soul Protocol, integrating into Soul’s ecosystem and connecting with top lending protocols such as Aave, Compound, and Morpho to enable users to perform cross-chain and cross-protocol lending and borrowing.

As the integration with Soul Protocol requires cross-chain messaging endpoints to be deployed in real-time, we are excited to announce that Hatom will allocate resources to support the integration of Layerzero with the ecosystem. This marks the first step toward uniting Hatom and Soul Protocol. Layerzero will serve as the initial endpoint connecting both protocols in this process, with Pi Squared integrated alongside other cross-chain messaging layers

Additionally, we can envision Soul Protocol leveraging USH Facilitators to optimize yields across established money markets such as Aave and Compound. The future is truly exciting!

We remain deeply committed to the principles of transparency, decentralization, and community empowerment. As we continue to innovate and expand, we pledge to open-source all our protocols in due time, just as we have already done with our Liquid Staking solution. Our ultimate goal is to create a truly decentralized ecosystem where Hatom Labs is no longer the main contributor to the protocol, allowing it to scale, thrive, and grow independently of us.

Once the ecosystem has matured and reached sufficient stability, we are committed to making all our primitives immutable and no longer upgradeable, ensuring the integrity and permanence of our protocols. Together with our community, we are building not just for the present, but for a sustainable and decentralized future.

We’ve come a long way on this journey, and it’s incredibly rewarding to see our products making a significant impact on the ecosystem. Our determination remains stronger than ever, and we are committed to driving adoption, building new financial primitives, and advancing the DeFi landscape.

An updated post detailing our vision and outlining the roadmap ahead will be shared soon, providing the community with clarity on the next steps in our journey. In the meantime, we want to extend our heartfelt gratitude to our incredible community, the partners who played a pivotal role in the launch of USH, and the entire Hatom Team whose tireless efforts brought these innovative products to life.

Together, we are going to bring the change we want to see in the world!