# What is Haust Network?

**Published by:** [JulyK](https://paragraph.com/@julyk/)
**Published on:** 2024-08-15
**URL:** https://paragraph.com/@julyk/what-is-haust-network

## Content

In the ever-evolving world of cryptocurrency, new innovations are constantly emerging to address the limitations of existing technologies. Haust Network is one such innovation, promising to revolutionize the way we think about blockchain scalability and yield generation. Let's dive into what makes Haust Network unique, how it works, and why it could be a game-changer for the crypto community. What is Haust Network? Haust Network is a cutting-edge Layer 2 solution built on the Ethereum Virtual Machine (EVM). It aims to provide an "Absolute Liquidity Layer" with native yield generation for users' crypto assets. Essentially, it’s designed to enhance the returns on your crypto investments while also solving some of the key scalability issues that have plagued blockchain technology. Features of Haust Network Haust Network leverages zk-rollups, a layer 2 technology that significantly improves blockchain scalability, security, and transaction costs. Here's a breakdown of the benefits:Low Commissions: zk-rollups reduce the load on the main Ethereum blockchain by aggregating transactions and performing computations off-chain. This leads to lower gas fees, making transactions more affordable.Data Optimization: ZK-SNARKs, a type of cryptographic proof used in zk-rollups, compress transaction data. This compression helps further reduce fees and enhances overall efficiency.Enhanced Scalability and Security: By processing many transactions off-chain and only settling final results on the main chain, zk-rollups offer a scalable and secure solution to blockchain's scalability problem.How does Haust works? Haust Network integrates native yield generation directly into its protocol. When you deposit tokens into the Haust Network, such as hUSDT, hUSDC, hBTC (hWBTC), or hETH (hWETH), these tokens automatically compound over time. Here’s how it works:Yield Generation: Haust interacts with various liquid staking protocols deployed across multiple blockchain networks. These decentralized protocols use smart contracts to stake assets securely and transparently.Automatic Distribution: The returns from these staking protocols are collected and distributed back to Haust users at regular intervals. This means your assets are constantly working to earn more, without you needing to do anything manually.Haust Tokenomics Haust Network has a well-defined tokenomics structure for its native token, HAUST. Here’s a breakdown:Maximum Supply: 10,000,000,000 HAUSTLiquidity: 20% (2,000,000,000 HAUST) is allocated for providing initial liquidity on decentralized and centralized exchanges. This portion will be available gradually.Ecosystem: 25% (2,500,000,000 HAUST) is reserved for incentivizing developers, users, and partners. This will be distributed through grants and rewards over the next five years.Treasure: 30% (3,000,000,000 HAUST) is kept in reserve for strategic initiatives and the protocol’s sustainability. It also includes funds to subsidize gas fees and will be unlocked as needed.Loyalty: 10% (1,000,000,000 HAUST) is designated for Loyalty Program point holders with a one-year unlock period.Team: 15% (1,500,000,000 HAUST) is allocated to the core team and advisors, with a three-year unlock period to ensure long-term commitment.About Haustoria Haustoria is a network of smart contracts that manage user assets across different blockchains. These contracts act as automated portfolio managers, constantly optimizing and growing the assets deposited by users. Profit Distribution: Out of the total profit generated, 3% goes to the DAO and incentives programs, while 97% is distributed among users. Decentralized Autonomous Organization The DAO plays a crucial role in Haust Network by allowing users to have a say in its development and governance. Through the DAO, users can:Select new blockchain networks to integrate with Haust.Set risk and return parameters for Haustoria contracts.Allocate grants from the ecosystem fund.Adjust tokenomics and incentive mechanisms.Quadratic Voting Haust Network employs quadratic voting to ensure fair representation in decision-making processes. In this system, the weight of each vote is based on the square root of the number of ve-tokens used. This method prevents the concentration of power in the hands of a few and ensures that even smaller stakeholders have a meaningful voice. Haust Network is more than just a blockchain protocol, it’s a comprehensive solution designed to tackle the scalability issues of Ethereum while providing users with an innovative way to generate yield on their crypto assets. By integrating zk-rollups, native yield generation, and a well-structured tokenomics system, Haust Network offers a promising future for both users and developers. With its focus on decentralized governance and fair representation through quadratic voting, Haust Network is set to be a significant player in the evolution of blockchain technology. More information about the project can be found below: Twitter: https://x.com/HaustNetwork Discord: https://discord.com/invite/QWGxjTXD8N Web-site: https://haust.network/ Telegram: https://t.me/haustnetwork

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