Navigating The Surfaces of A Poly-Faceted Token Economy

A deep dive into the three-way decentralized finance feedback loop between the Hex, Hedron and Icosa token protocols.

Let’s talk about Hex, baby…

Hex is a replica of the Bitcoin protocol running on Ethereum. Instead of Proof of Work, it’s Proof of Stake. Stakers take the place of miners earning the inflation yield while upholding the price and protocol.

Hedron, the decentralized finance derivative layer built on Hex

Hedron is a DeFi (decentralized finance) layer built on top of Hex which serves to unlock liquidity by effectively creating a derivatives marketplace.

So what’s the need for Hedron?

Hedron HSI use case flow diagram taken from https://hedron.pro

Icosa, the 3rd leg of the stool

Icosa can be defined as a Liquid T-share which can only be minted into existence through Hedron stakes.

Icosa flow diagram taken from https://icosa.pro

5 ways to obtain Icosa

  1. Buy it on the open market, through the Uniswap decentralized exchange, which will increase its price volatility based on supply and demand dynamics
  2. Stake HDRN for ICSA yield on the Icosa dapp interface of Icosa.pro
  3. Mint a We Are All The Source Address (WAATSA) NFT which is an ICSA yield bearing NFT bond that is redeemable once and only once by burning the NFT in order to claim the yield it has accrued. (This was a 14 day window of opportunity for early adopters which is no longer available at the time of writing this article.)
  4. Use a tokenized HSI (Hex Staking Instance) to do a buyback denominated in ICSA, which immediately puts the HSI in default status, forcing it to auction in 90 days. This is where the arbitrage opportunities can be interesting if one can determine the fair market value of ICSA vs a T-share.
  5. Stake ICSA for ICSA and HDRN yield, which requires a lockup term that is automatically set based on the number of ICSA being staked.

Closing the loop

Honourable Mentions and Sources

Icosa and Hedron official links and websites:

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Web3, crypto & DeFi growth and operations scaling + go-to-market strategist with over 20 years of experience. I write about DeFi, Web3, ops and token economies.

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Cryptograficos

Web3, crypto & DeFi growth and operations scaling + go-to-market strategist with over 20 years of experience. I write about DeFi, Web3, ops and token economies.