Denis Sebastian Tamas | Unsplash
After farming for a while in Hybra's liquidity pools, they have enabled their airdrop claim. In phase 0, you had to open a position in a pool, which allowed you to earn points and the respective fees generated, which varied depending on the pair chosen.
In my case, I preferred to treat it as a learning experience, so I didn't invest much compared to traditional users, who contributed liquidity above $1,000. For my part, the most I invested was $185, so I didn't expect much, but it would allow me to discover how the platform worked, as well as see if they delivered on what they communicated. Considering that it was not a testnet, in most cases the rewards are managed efficiently.
Something I realized is that capital moves from one project to another. When there is an opportunity, it usually goes to the place where there is the most profitability. So that results in trading volume varying and affecting the fees that can be collected. It is crucial to take this into account because when a new token is about to be released on the market, it will be guided by the potential that the project has at that moment, so people will start to look at the TVL level. Following this, they will question whether the project will be able to aspire to have an FDV close to expectations, which would mean that at the time of the TGE, the price of the token entering circulation would have a reasonable value, translating into a higher profit.
From my perspective, one does not lose by adding liquidity. Beyond the volatility of liquidity pool tokens (with an emphasis on HYPE), the returns are sufficient to put aside the idea of the airdrop, but we pursue it anyway. Many users seek to earn an airdrop and leave. Others will be loyal to the project, and for this, the project has an ideal scenario in which the user will be an important participant in the platform.
Having achieved a score of 145k in Season 0, I wasn't expecting much, to be honest. When I checked the allocation, I noticed that I had qualified to claim 786 veHYBR as soon as it became available. I knew it would be a small amount, because everyone was talking about over 1M points. Even so, I prioritized the experience on this platform, but it would also be useful for other projects such as ProjectX, GLiquid, or perhaps HyperSwap, among others. Although Hybra clearly has its own style.
The project devised a somewhat different mechanism. At first glance, we might think that they are tokens themselves. In reality, they are NFTs, which can be put up for sale on HyperWarp. Upon entering, the system will detect them and reflect the respective amount of “tokens” that have been added to your account. In this case, putting them up for sale means an attempt to get users to buy that NFT, which ultimately means voting power to use on the Hybra platform. These veHYBRs are locked, but you end up having the possibility to sell that position on the secondary market (users will be able to buy the position for a specific market value to acquire more voting power).
I admit that I have had difficulty understanding the block explorer, in this case Purrsec. I am someone who uses block explorers a lot, and I generally know how to understand transfers and so on. In this case, I was lost. As you can see in the image, it appears that information is being sent from my account to another, so I assume that this is the staking of that NFT on the HyperEVM blockchain. This, in turn, is one of the governance mechanisms for operating on Hybra, or at least, that is how it is designed.
I also don't really understand why a burn account that interacts with my account appears. So one is forced to constantly learn, which is exciting.
Transaction of the veHYBR claim
Transaction of the vote cast (fees claimed)
The HyperWarp market has fallen slightly. When I first entered, there was much more trading volume, and the price per HYBR was much higher, around 0.00035. Since I would receive very little for selling my position, I preferred to leave it there and let everything flow until the next decision. Then, they enabled pool voting, which is a way of voting to determine which pool will receive weekly HYBR emissions. I imagine that this will also influence the liquidity of that pool and the return it can promise to users if they add LP.
If you sell your position, you can choose to receive the traditional WHYPE. But if you want to get USDH or even HYBR in liquid form. As in most cases, it is sometimes advisable to sell as soon as the sale is enabled, because shortly afterwards, prices fall considerably. The larger the amount, the more important the decision you should have made. Many users preferred to do so, others decided to go for the votes, which is a valid and very profitable point.
The veHYBR lock-up period is at least one year. As time passes, voting power decreases. When the lock-up period finally ends, the locked veHYBR becomes liquid HYBR, the amount of which will depend on how long you have locked it up. I don't yet know how to change the lock-up period, but in my case, it's close to 2 years, which means that at the end of that time, I would get 100% liquid HYBR (and during the two years, I will be able to vote). Of course, you can vote every week.
Finally, this is the voting interface. As you can see, we can set the percentage of votes in the respective pools that interest us most. However, we can also use the buttons that distribute our vote intelligently (Smart Vote).
You can vote at the last minute or at the beginning. I guess when the 100% bar is full, you can no longer vote. And as we know, you can't vote when the time expires either. Today I managed to claim $0.17 and $0.04 for voting. It's not much, yes, but the important thing is to understand how this mechanism works, how it was designed. Considering that there is a second season (actually Season 1), the bet is much safer because they have delivered on what they said they would. It is definitely a project that can be trusted at the moment, unlike others that have been disappointing.
There is still much to learn. This is nothing new, but it does leave its mark. I will gradually try to understand all of this, which is very new to me, but now we have the tools to understand it all in depth. So let's continue learning as we go. I hope you found this interesting. Take care.
- Main image edited in Canva.
- Screenshots taken from my account.
- English translation by DeepL.