Hector Network Unveils TOR, First Stablecoin with Layer 2 Backing
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Hector Network launches cutting-edge stablecoin mechanism to replace centralized assets in the DeFi era.
Hector Network introduces TOR stablecoin
Hector Network, a DAO-governed decentralized finance ecosystem, addresses the most dangerous bottlenecks of the modern crypto finances system, i.e., the centralized economic basis of major stablecoins.
Its TOR USD-pegged stablecoin works not unlike Terra’s UST: its issuance process depends on a mechanism powered by smart contracts.
TOR is interconnected with HEC, a core governance and utility asset of Hector Network through a Time Weighted Average Price (TWAP) oracle-based mechanism.
TOR tokens can only be created by burning a predetermined amount of HEC tokens (similar to how the UST minting process needs LUNA to be destroyed).
In turn, TOR tokens can be swapped seamlessly for HEC through the same TWAP-powered oracle mechanism.
What is special about this architecture is the fact that TOR’s peg to the U.S. Dollar is guaranteed by a Layer 2 mechanism that includes a $100 million Hector DAO treasury and HEC/TOR liquidity module.
Fewer risks, better sustainability: Why do we need decentralized stablecoins?
Hector Network’s TOR is a collateralized stablecoin: its usage implies fewer risks while its peg to U.S. Dollar is more stable.
Also, it unlocks opportunities for crypto start-ups: they do not need to rely on a single fiat currency anymore.
Hector Network’s HEC is one of the world’s first “deflationary-by-default” utility tokens. It means that HEC holders are protected from inflation and can hedge against the volatility of crypto markets.
Besides HEC and TOR assets, Hector Network created a staking dashboard and decentralized crypto exchange (Hector DEX). The launch of Hector Bank, a native crypto-based payments solution, is in the cards for Hector Network.
The product’s Fantom-based codebase is audited by CetriK, the most trusted cybersecurity vendor in the blockchain segment.
Arman Shirinyan
Alex Dovbnya
Dan Burgin