Haustoria: Your Gateway to Smart DeFi Earnings
Last updated
Last updated
Generating passive income without constantly managing your investments is an appealing prospect in the DeFi landscape.
While many crypto enthusiasts recognize the potential gains from yield farming and staking, these opportunities often come with their own set of significant hurdles.
Manually finding and managing profitable opportunities across different blockchains can be a complex and time-consuming process. It requires an in-depth understanding of the mechanics and risks associated with each protocol. Additionally, users must continually monitor market trends, switch across various platforms, and manage multiple wallets, each presenting unique challenges. Such a thing takes up a lot of time and also increases the risk of human errors like misplacing seed phrases or miscalculating gas fees, which can lead to significant financial losses.
Moreover, without a streamlined system, users might miss out on optimal yield opportunities simply because they aren’t aware of them or don’t have the resources to manage multiple strategies simultaneously. The lack of automation in traditional yield farming means that users are often stuck with suboptimal returns or, worse, lose money in volatile markets.
The absence of automated yield generation also means that users are losing out on potential profits every day. In a fast-paced market, the difference between a well-managed portfolio and a neglected one can be drastic. Over time, these missed opportunities can add up to substantial losses.
All these points led to the question: What users could have earned if they had the right tools in place?
This is where Haustoria, the core of the Haust Network, comes into play. Haustoria offers an automated and seamless experience, enabling users to earn native yield on their crypto assets with minimal effort. It eliminates the need for constant monitoring and manual intervention by automatically allocating and managing user funds across the most profitable protocols. Such a feature saves users time and maximizes returns, ensuring that users are always in the best position to profit from their holdings.
With Haustoria, users can finally tap into the full potential of DeFi without the headache of active management. It’s a solution that brings peace of mind, knowing that your assets are working for you, round-the-clock, in the most efficient and secure way possible.
But, Haustoria is not just another yield-generating tool, it’s a sophisticated mechanism. By leveraging a network of smart contracts, Haustoria interacts with various DeFi programs, using the deposited liquidity as collateral. The yield generated from these programs is then automatically distributed back to users in the form of native yield.
As mentioned, Haustoria is not limited to a specific set of protocols or blockchains. If a new DeFi program, such as one offering an attractive APY, meets the Haust Network’s safety and reliability standards, Haustoria can quickly integrate and deploy user funds into that program. Such adaptability makes Haustoria comparable to a decentralized hedge fund, dynamically managing and reallocating assets to ensure maximum profitability.
Deposit & Distribution Process:
User Deposit Initiation: Users begin the deposit process by transferring tokens to an address generated by Haustoria, which operates within various blockchain networks such as Ethereum, Polygon, and BSC. The Collection Service then tracks the balance to ensure the minimum required amount is met.
Transfer to Vault: Once the balance exceeds the minimum threshold, the Collection Service transfers the user’s tokens to the Vault, a smart contract designed to store user funds in the donor network. Of the deposited tokens, 90% are allocated to a lending protocol (initially AAVE) via the AAVE Plugin, while 10% remain in the Vault to maintain liquidity for withdrawals.
Tokenization via hTokens: As the deposit is processed, Haustoria interacts with the Haust Hub contract to calculate the hToken/Token exchange rate. The system then mints the corresponding amount of hTokens for the user’s wallet within the Haust Network. The minted hTokens represent the user’s proportional ownership within the network, and their value auto-rebases based on the earnings generated by the underlying protocol. Additionally, the hTokenTotalSupply and TokenTotalSupply variables are updated to ensure accurate exchange rates.
Risk-Adjusted Allocation & Restaking: As mentioned, Haustoria allocates deposited funds across various high-yield DeFi protocols like AAVE, guided by predefined risk parameters. To maintain the 90%/10% ratio, the backend service conducts periodic Restaking, that includes:
Processing withdrawal requests.
Rebalancing the proportion of liquidity between the Vault and the AAVE Protocol.
Depositing or withdrawing tokens from AAVE to maintain the target 10/90 proportion. During restaking, if the proportion fluctuates beyond the acceptable range of ±2%, the system rebalances to restore the optimal ratio, keeping the liquidity flow efficient.
Tokenized Representation & Auto-Rebasing: Users receive hTokens upon deposit, which are pegged to the value of the underlying assets. These tokens auto-rebase, meaning their value continuously adjusts to reflect the earnings generated by the protocol. The hToken/Token rate evolves dynamically based on the performance of the funds in AAVE and the total liquidity within the Vault and AAVE combined. The rebasing mechanism ensures that users’ token holdings grow in value over time, without the need for manual adjustments.
Passive Income Distribution: As yield is generated from the AAVE protocol, the value of users’ hTokens appreciates accordingly. Haustoria automatically distributes profits in proportion to each user’s stake in the system, increasing the USD value of the tokens. Users’ wallets reflect this increase passively, without requiring any manual intervention. The system handles all transactions related to yield distribution, leveraging its backend services for efficiency.
Withdrawal Process:
1. Immediate Liquidity Check: When a user requests to withdraw hTokens, Haustoria first checks the liquidity in the Vault of the chosen donor network. If sufficient liquidity is available, the user’s hTokens are burned, and they receive the corresponding amount of regular tokens.
2. Insufficient Liquidity & Queueing: If the Vault lacks sufficient liquidity, the withdrawal request is queued until the next restaking cycle. During this cycle, tokens are transferred from AAVE back to the Vault to satisfy the withdrawal.
The transfer amount is determined using the formula:
X = (hToken/Token)*hTokenWithdraw — TokenVault + (TotalToken — ((hToken/Token)*hTokenWithdraw))*0.1
(hToken/Token)*hTokenWithdraw — amount of Tokens user want to withdraw
TokenVault — current amount of Tokens in the Vault (Liquidity in Vault)
TotalToken — the Sum of TokenVault and Liquidity in AAVE
(TotalToken — ((hToken/Token)*hTokenWithdraw))*0.1–10% must remain in the Vault after the withdrawal request is made (based on Proportion)
This ensures that 10% of the total liquidity remains in the Vault after the withdrawal.
3. Transaction Fees: Withdrawal transactions are subject to fees, calculated based on gas costs and platform coefficients. For some users, the Haust Network covers these fees using Account Abstraction (AA), or they may be reduced from the withdrawal amount.
Let’s take a journey with Alice, a crypto enthusiast who’s been looking for a more efficient way to grow her assets in the DeFi space. Alice has 2000 USDT that she wants to invest, but she’s tired of juggling multiple protocols and constantly monitoring the markets.
Alice decides to deposit her 2000 USDT into Haustoria. Here’s how the system intelligently takes over:
1. Strategic Allocation: The moment Alice’s funds are deposited, Haustoria springs into action. The system doesn’t just sit idle — it carefully analyzes the current market conditions and selects three prime opportunities for Alice’s investment.
1000 USDT is allocated to a staking protocol with a 15% annual yield, serving as the primary growth driver in her portfolio.
500 USDT is invested in a protocol that yields 10%, offering a solid return and risk balance.
The remaining 500 USDT goes into a low-risk program with an 8% yield, providing a consistent and reliable income stream for Alice’s portfolio.
2. Effortless Earnings: Over time, Alice’s investment begins to work for her. The beauty of Haustoria is that it handles everything — Alice doesn’t need to lift a finger. The system continuously monitors and optimizes her investment across these selected programs.
As the days go by, the yield programs generate returns. For instance, after one month, Alice could see her initial 2000 USDT grow by approximately 19.99 USDT. The profit is seamlessly and automatically credited to her wallet, allowing her to enjoy the benefits of yield farming without the usual headaches.
3. A User-Friendly Experience: This example highlights how Haustoria transforms the complex and often overwhelming world of DeFi into a simple, automated experience. For Alice, there’s no need to understand the intricacies of each protocol, no late-night market checks, and no stress over missing the best opportunities.
Haustoria acts as a bridge between Alice and the wide range of DeFi possibilities, offering her a user-friendly gateway to passive income. With the system taking care of the hard work, Alice can focus on what matters most to her — whether that’s exploring new investment opportunities, learning more about crypto, or simply enjoying her life, knowing her assets are in good hands.
Wrapping up , Haustoria is a game-changing mechanism that brings together the best aspects of decentralized finance into a single, powerful tool. By automating yield generation and optimizing returns across multiple networks, Haustoria makes it easy for users to profit from DeFi without the complexity. Whether you’re a seasoned investor or new to the space, Haustoria provides a secure and efficient way to grow your assets passively.
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