Helio Protocol has recently unveiled an exciting development for its users, allowing them to leverage ETH as collateral to borrow HAY, the protocol’s over-collateralized destablecoin. This strategic move not only widens the spectrum of collateral options available to users but also reflects Helio Protocol's unwavering commitment to delivering a dynamic and diverse DeFi experience.

ETH Collateral Guidelines

Users who choose to borrow against their ETH collateral will be pleased to learn that there are no borrowing interest charges for HAY. In essence, the borrowing interest rate for HAY when using ETH as collateral is set at an enticing 0%.

Similar to the previously established BNB collateral, ETH collateral must maintain a minimum Loan-to-Value (LTV) ratio of 66%. Liquidation will set in once the LTV ratio of ETH collateral dips below this critical threshold.

The process of providing and withdrawing ETH as collateral on Helio Protocol adheres to specific requirements. To provide ETH as collateral, a minimum of 0.1 ETH is necessary, along with a minimum borrowing amount of 15 HAY.

Upon deposit, 80% of the total ETH collateral within the smart contract address will be automatically converted into wBETH within the same smart contract. This conversion is designed to accrue ETH liquid staking rewards. When withdrawing ETH collateral, users have two options:

1. Instantly withdraw wBETH based on the current wBETH exchange rate.
2. Instantly withdraw ETH, provided there is sufficient ETH reserve in the pool. Notably, a nominal 0.1% fee will be applied to this option.

Users will consistently be notified about their available withdrawal quota, derived from the remaining pool of ETH collateral (20%) that has not been liquid staked. In cases where the withdrawal quota is insufficient, a transparent notification will promptly appear, ensuring user convenience.

For users looking to avoid the 0.1% fee, option 1 offers the choice to withdraw wBETH instead. Subsequently, users can either trade their wBETH for ETH on PancakeSwap or redeem their ETH through Binance.

For detailed instructions on redeeming ETH on Binance, users can follow the provided guide.

How to provide ETH collateral on Helio

1. Visit Helio Protocol & connect your wallet to BNB chain

2. Click the “+” sign under “my collateral”

3. Enter the desired amount of ETH to be used as collateral on Helio Protocol. If this is your first time providing ETH as collateral, click "approve" and confirm the transaction.

4. To complete the process of providing ETH collateral, click "proceed," confirm the transaction, and you're all set.

The team at Helio Protocol is thrilled about this new phase in their DeFi journey and eagerly anticipates delivering further updates and clarifications as they continue to refine and elevate their platform. With the arrival of ETH as collateral on BNB Chain, could Helio Protocol be teasing an upcoming expansion to Ethereum Mainnet?

What is Helio Protocol?​

Helio Protocol is an open-source liquidity protocol for borrowing and earning yield on HAY - a new BNB-backed, over-collateralized destablecoin. Built on the BNB Chain, Helio Protocol consists of a dual-token model and mechanisms that support instant conversions, asset collateralization, borrowing, yield farming, and destablecoin staking. Helio Protocol aims to deliver an improved version of already successful stablecoin projects by further optimizing safety and capital efficiency. The protocol aims to achieve this by leveraging Proof-of-Stake (PoS) rewards, liquid staking, and yield-bearing assets. 

Helio smart contracts have notably undergone multiple external audits and security assessments from industry-leading security firms such as CertiK, SlowMist, PeckShield, and Veridise. 

Stay updated with Helio Protocol and HAY via the following links:

Website | Twitter | Telegram | Medium

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