Documentation for the Hundred Finance Protocol
In Brief: Hundred Finance is a decentralized application (dApp) that enables the lending and borrowing of cryptocurrencies. A multi-chain protocol, it integrates vote-escrow tokenomics in the cross-chain management of protocol governance and incorporates Chainlink oracles for system health and stability in its provision of markets for long-tail crypto assets.
Since the explosion in popularity of the decentralized finance ecosystem in 2020, borrowing and lending platforms have become core infrastructure within the cryptocurrency space. Not only do they provide users the ability to “hodl” or leverage their crypto assets, obtaining liquidity from their investments (a crypto-backed loan) while simultaneously earning interest, they also underpin the workings of many other protocols. The movement of assets from the Ethereum mainnet to EVM-compatible blockchains and scaling solutions has only emphasized their importance. Platforms that grant the ability to borrow and lend are one of the key applications users look for on any emerging chain. Hundred Finance aims to play a central role in provisioning borrowing and lending services in this new multi-chain world, granting the ability to earn yield and borrow assets to a growing number of users in a trustless, secure, and economically efficient manner.
Hundred Finance first launched on Ethereum’s Kovan testnet in late-June of 2021. Following a two-month period of extensive testing, it was then soft-launched on the Ethereum mainnet in preparation for the generation of the HND native token. With the platform and token up and running, the fully-enabled Arbitrum version of the Hundred Finance dApp was deployed and the distribution of HND started.
In December of 2021, a vote-escrow governance token mechanism was implemented using contracts developed by Curve Finance. This addition facilitated direct community involvement in the emission of HND through the use of stablecoin staking contracts known as gauges. These gauges receive a quantity of HND each epoch (one-week period) based on votes cast by our multichain mveHND (mirrored vote-escrow HND) governance token holders.
The distribution of HND is ongoing, as the broadening of the ownership of our governance token and the platform’s usage are the principle means by which Hundred Finance is acquiring a decentralized, community governance structure and the ability to function as a trustless provider of borrowing and lending services.