Understanding hJOE
What's a hJOE Ser?
JOE Zappers are the backbone of the SteakHut Herd. Through Zapping your JOE tokens with SteakHut you receive hJOE (herd JOE). This helps grow the Herd's JOE stash and allows everyone to enjoy boosted yields.
JOE Zappers receive hJOE
You can stake your hJOE to earn $STEAK emissions and profit shares
What is hJOE?
Herd JOE or hJOE is SteakHut’s wrapped JOE tokens that have been Zapped with SteakHut.
By staking hJOE, users are eligible to receive $STEAK emissions initially followed by profit shares generated by the protocol.
The token is fully backed at least 1:1 by JOE, hJOE can only be redeemed for JOE held in reserve.
hJOE is tokenized veJOE
If a user deposits JOE into SteakHut, that JOE is locked forever on the platform as veJOE.
A tokenized version of veJOE, hJOE, is returned to the user at a 1:1 rate.
hJOE conversion is 1-way. Liquidity pools may exist that allow users to swap hJOE for JOE tokens, or it may be burnt on the dApp when reserves exist.
hJOE Staking
Initial JOE Zappers will be eligible to receive $STEAK emissions for their contribution to the SteakHut Herd.
$STEAK emissions are utilized to incentivize Zapping and reward our Zappers.
hJOE staking allows users to unstake at any time without penalty.
Zapping JOE and Staking hJOERewarding JOE Zappers with $STEAK
Users who convert their JOE tokens into herdJOE (hJOE) tokens will be incentivized with emissions of $STEAK token by staking. This encourages users to initially convert their JOE into hJOE and essentially entitles the initial zappers to own a portion of the protocol.
Essentially Zap JOE -> receive hJOE
By Zapping your JOE tokens with SteakHut. You may be eligible to earn passive income forever by receiving and holding $STEAK tokens!
Investors will also be able to directly buy $STEAK tokens on market after the protocol launch.
Rewarding JOE Zappers with JOE
As the SteakHut protocol matures we will be looking to move away from $STEAK emissions and begin rewarding Zappers with a direct profit share for staking their hJOE.
By staking their hJOE, JOE Zappers will be entitled to receive a share of revenues generated by the protocol fees.
The profit share will be paid out of revenues generated by the platform's performance fees. The fees will be operated on a sliding scale from 3-20% optimized for the best outcomes for both LP depositors, Zappers, and STEAK-Holders.
The performance fee will be utilized as follows:
Distributed to STEAK-Holders (50%)
Distributed to JOE zappers to incentivize zapping (50%) initially Zappers will be incentivized with $STEAK emissions.
The 50/50 split is subject to change.
How to redeem hJOE for JOE?
When there is JOE in the reserve hJOE holders are free to redeem their hJOE to JOE at a 1:1 ratio (before the dynamic burn fee). This reserve only fills up when new users deposit and when hJOE profits are allocated to the reserve.
Redeeming hJOE can only be done on the official SteakHut dApp. Users can burn hJOE for JOE while the reserve lasts.
hJOE Dynamic Burn Fee
SteakHut’s hJOE redeemer will have a dynamic burn fee that will operate between 0–50%.
The burn fee is reviewed periodically and will be adjusted depending on the market conditions, hJOE redeeming pressures, reserve levels, and remaining competitive with other JOE Wars protocols.
The burn fee is paid in $JOE tokens and is held within the hJOE reserve allowing for further liquidity for additional users.
Ensure to check the burn fee and hJOE reserve levels on the dApp before redeeming.
Advantages of the Dynamic Burn Fee
Allows further liquidity for additional users
Ensures that 1 hJOE is backed by >1 JOE token, allowing higher sustainable APRs
Reduces sell-side pressure when needed
Allows for more efficient conversions on hJOE to JOE conversions overtime
How does the hJOE reserve work?
The hJOE reserve has been created for the sole purpose of providing liquidity for hJOE holders, making hJOE redeemable for JOE. Capital for the reserve comes from two mechanisms:
1) When hJOE is minted a portion of 0-100% of the JOE will be allocated to the reserve, with the remaining being staked into SteakHut’s veJOE contract
The allocation will operate on a sliding scale to achieve the best outcomes for the platform. That is the proportion could be reduced to increase allocations to veJOE staking, or when more liquidity is needed, up to 100% of Zapped JOE can be allocated to the reserve.
2) As the protocol matures hJOE token-holders may receive JOE tokens distributed from profit shares instead of STEAK emissions. If needed this JOE may instead be allocated to the hJOE reserve to provide liquidity and allow redeeming.
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