2022-05-13 23:32:27
Hectorians!
Eventful days lie behind us, which have shaken the whole crypto sector to its foundations. The drama around Luna and UST has shown us that even the unthinkable is possible and no project is too big to fail. At present, we can only speculate about the background of the events. What is certain, however, is that this will have a lasting impact on the market. At this point, our thoughts are also with all those who have suffered high financial losses due to the recent developments.
Such an event was not foreseeable and has taken many by surprise. This is certainly one of the largest destruction of assets the crypto market has seen to date. Hector Finance was not left unscathed. In addition to the price losses we are currently seeing in all projects, such as FTM, BTC and BNB, we had holdings of $40,000,000 in the UST wormhole. When we became aware of the problems with UST we acted immediately, studied the market closely and also called in external consultants for help. Due to the rapid developments in the price and the sheer amount of UST in our possession, it was not possible to liquidate the entire position quickly. Rather, we had to use every recovery to liquidate positions, always with the danger in the background of risking a total loss. Unfortunately, this was only possible with a substantial loss. Despite the rapidly progressing events, we were able to save $23,644,387, which we now hold in what we consider the safest stablecoin USDC.
As everyone is aware, the whole market is suffering at the moment. We see a high level of panic, which is reflected in significant price drops and withdrawal of cash from the crypto space. Also, stablecoins in general are currently under high pressure and panic selling is occurring. At this point, it is worth reading the recently published article about $TOR, in which we go into detail about the differences to other stablecoins: https://medium.com/@HectorDAO/why-hec-tor-and-luna-ust-are-not-alike-8f5e7d8c75ef
As a result of the actual panic in the markets, people have withdrawn stables from the TOR Pool. To rebalance it, we had to remove TOR from the pool and add some USDC. This was done to avoid HEC price manipulations and because of the rebalancing, we temporarily suspended new minting of TOR. It is currently paused till further notice, until the demand will require its opening once again.
The current situation will certainly continue for some time and will require some sacrifice from everyone.
This leads us to a fundamental question:
Do we still believe in DeFi and its mass adaptation in the future?
From our point of view, this can be answered with a clear "yes". We see more and more countries, institutions and business enterprises, which believe in the future of DeFi and actively shape it. Especially in these difficult times one thing is more important than before, namely to learn from the past to be prepared for the future!
We are working on this future, more than ever before. You all know our plans for this year. Development of the NFT marketplace is in full swing and we will be able to provide you with first impressions very soon. Regarding our GameFi plans, we have partnered with Catheon Gaming, who are the creators of SolChicks among other things. Together we are working on a metaverse that will change the market for good! We are also very excited about the upcoming NFT collection (Mythos collection), which will appeal to a new target group, increase our visibility and create new opportunities.
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