Hakka Finance (HAKKA) is a decentralized financial ecosystem. With products DeFi Notably managed by governance tokens: HAKKA.
- Hakka Finance what?
- HAKKA What problem does it solve?
- Should you invest in? Hakka Finance or not?
This article will answer these questions in turn. And give you an overview from the general to the detailed about this project. So what are you waiting for, let’s start writing right now!
Maybe you are interested:
What is DeFi? Why is Defi storming today?
What is Hakka Finance?
Hakka is an ecosystem of many decentralized financial products. Now available: Holeswap, Defi ebook, 3F Mutual (insurance), …
What problem does Hakka Finance solve?
Currently, participants have little choice but to trade on centralized exchanges. They have no control over their assets, giving the right to hold assets in the hands of the exchange.
This is a security issue that needs everyone’s attention. There’s actually been a lot of news about exchange hacks over the past few years.
How Hakka Finance solves the problem
Provide an ecosystem of financial products and services built on a decentralized network.
In the ecosystem of Hakka Finance, everyone can access and use it anywhere, anytime. Not subject to the control of any individual or organization (third party) (resolving the entrustment problem).
Products of Hakka Finance include:
DeFi Handbook makes it easier for you to learn DeFi protocols.
Main interface of DeFi Handbook
BlackHoleSwap is a decentralized AMM exchange designed for stablecoins.
BlackHoleSwap main interface
How to use BlackHoleSwap:
Step 1: Need to connect wallet
Step 2: Enter the amount of coins to swap
Now BlackHoleSwap only allow swap between TOUGH and USDC
3F Mutual (3FM) is an insurance agreement that runs on Blockchain and is intended to provide a hedging mechanism in relation to products DeFi, such as MakerDAO, insurance mechanism against DSS (Great Stablecoin System).
With the strong development of DeFi (Decentralized Finance), asset value and transactions locked in DeFi is also increasing. However, recently DeFi there have been several security incidents, showing the dangerous and fragile side of DeFi, which started to draw attention to the need for hedging risk.
3F Mutual Ideas
solve that problem is in the project case MakerDAO If it collapses, the participants will buy insurance 3F Mutual to get the compensation insurance money back.
For example, if I buy insurance equivalent to 1 ETH then if the project MakerDAO crashed, I will get 132.97 ETH (at the time of this writing).
The main interface of 3F Mutual
What is MakerDao and what causes MakerDao to crash?
MakerDAO is the most important protocol in the field DeFi (decentralized finance). Assets locked in DeFi worth over $9.6 Billion as of September 2, 2020. Nearly $1.6 Billion in assets are locked in MakerDAO, accounting for 17% overall.
Maybe you are interested:
What is MakerDao (MKR)? Things to know about the top 1 DeFi platform in 2020
TOUGH, stablecoins are operated by the system MakerDAO, asking the user for a mortgage ETH or other specific assets to issue TOUGH. Because of the price volatility of collateral assets, the protocol MakerDAO requires users to maintain a ~150%+ collateral ratio. Once the collateral ratio is lower than 150%, the system will liquidate and auction some collateral to maintain the stability of the system.
What causes MakerDao to crash?
When faced with major systemic risks such as hacking attacks, system crashes, or massive market volatility, MKR Holders can vote to enable Emergency Shutdown as a last resort to protect owners. TOUGH and CDP (Collateralized Debt Position) from further damage.
Emergency Emergency Shutdown will terminate all normal functions of the device. MakerDAO, liquidate the remainder of the value of all collateral, return the remainder to all owners TOUGH and declare bankruptcy of MakerDAO.
Why take out insurance against MakerDAO?
Stablecoin system MakerDAO seems to be getting more and more dangerous lately. Price of TOUGH, as a stablecoin, assuming always fixed at 1$ is “NORMAL”. However, due to the frenzy of DeFi Recently, the demand for TOUGH pushed to a whole new level, making the price TOUGH suddenly went up and up (~$1.04 so far) as we can see in the chart below.
Price TOUGH Such a large increase and decrease is due to the fluctuation of ETH. If assuming case 1 ETH down to $100, below the 2/3 mortgage threshold Smart Contract (Smart Contract) of MakerDAO will take 1 ETH that is sold on the market.
When the price is down Smart Contract automatically sell more ETH then quantity ETH More and more outside the market, the price will go down further.
That leads to lower collateral than the promissory note leading to bankruptcy, MakerDAO will crashed (besides the case of the project being hacked).
3F Mutual appear as a financial insurance fund. Those who bought insurance from 3F Mutual will receive a part of the compensation with the rate depending on the amount of assets of 3F Mutual.
And the coverage of this insurance fund is not only for MakerDAO, but the entire ecosystem DeFi.
Who needs 3F Mutual?
Potential market of 3F Mutual is very large. Once MakerDAO crashes, all protocols are equivalent to TOUGH All of them will suffer heavy damage from it. Target of 3F Mutual not simply DAI’s emergency shutdown event MakerDAO, but rather the existence of the entire ecosystem DeFi.
Hedging potentially large risks is a must for every experienced investor. If you are not able to sustain the loss from the market crash DeFi, you should definitely spend some of that budget and invest in 3F Mutual as a fund for the worst case scenario.
How to buy insurance from 3F Mutual
Step 1: Connect your wallet
Step 2: Buy insurance
Fill in 2 parameters as required, in which:
Unit of Insurance: insurance unit
Time: time (from 0 to 100 days)
Then click on Purchase
How to get insurance money?
While MakerDAO is down, here’s where to get insurance money if you hold active insurance units.
You go to the Vault section and click on the Claim item as shown above.
This project aims to solve two lending problems DeFi: over-collateralized and illiquid, by creating a CDP – tCDP shared and encrypted. Similar to most lending protocols, tCDP requires users to deposit collateral before borrowing.
The difference is that tCDP’s users are sharing a huge location, instead of owning CDP single. It makes tCDP interchangeable and tradable.
Main interface of tCDP
Offers multiple investment objectives for investors with different risk profiles.
Crypto Structured Fund main interface
Fulcrum Emergency Ejection is a smart contract that automatically calculates the maximum amount that can be claimed in the Fulcorm iETH pool. It helps you to withdraw your stuck money as much as possible.
The main interface of Fulcrum Emergency Ejection
Similar projects to Hakka Finance?
Present Hakka Finance is the only project that provides these products and services in the ecosystem DeFi.
Project team of Hakka Finance
Team of Hakka Finance is a Dev team from Taiwan. Founder is Ping Chen:
Twitter: https://twitter.com/PingChenTW (2152 followers)
Partners of the project
No specific information about Partners of Hakka Finance
Investors & Advisors
Can’t find information about Investors and Advisors of the project
not found in the project’s whitepaper.
Hakka Token Release & Unlock
Bootstrap Fund: 10% (for Dev team and Community Support)
Ecosystem Fund: 20%
Teams and Advisors: 10%
Future Sales: 20%
Liquidity Mining and Incentives: 40%
Hakka floors are up
- Uniswap (Highest Volume)
- 1inch Exchange
Media channel of the project
Reviews of Hakka
The above article has provided you with an overview to details of each product and service of the Hakka Finance project.
According to the GTA team, this project develops a variety of products and uses Hakka Token as a common currency. However, when we went into each project in depth, we found that it was quite rudimentary and did not have the depth of development to bring the project to success. Therefore, the current team has abandoned this Hakka baby. A Fomo project is profitable but very risky.
For example, Black Hold Swap promoted quite loudly with more potential than Curve Finance, but when it entered, there was only DAI-USDC swapping back and forth. Pool’s liquidity is also very low. Therefore, it cannot be developed, let alone replace Curve.
And if you find GocTienAo’s article interesting, please share it with your friends.
All investment statements above are personal. All investment decisions are made by you and you are responsible for your assets. Good luck!
Virtual Currency Corner