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Welcome to Hermes Protocol
Resources and guides to get started with Hermes Protocol and HERMES
Hermes Protocol officially launched in February 2022 and started emissions in March 2022. Hermes allows liquidity providers to take decisions on adding new gauges, boosting gauge yields, voting on token emission, and receive bribes.
We want to thank Andre Cronje and everyone who helped him to come up with this concept, along with all his and their contribution to the whole of DeFi, literally building its foundations.
Hermes Protocol allows low cost, near 0 slippage trades on uncorrelated or tightly correlated assets. The protocol incentivizes fees instead of liquidity. Liquidity providers (LPs) are given incentives in the form of HERMES, the amount received is calculated as follows;
- 100% of weekly distribution weighted on votes from veHERMES holders
The above is distributed to gauges, however LPs will earn between 40% and 100% based on their own veHERMES balance.
LPs with 0 veHERMES balance, will earn a maximum of 40%.
- Natively supports swaps between closely correlated assets via a new curve (stable swaps)
- Natively supports swaps between uncorrelated assets
- 0.01% fee
- Fees are paid out in base assets, not converted
- Uniswap v2 compatible interfaces (allows support for all existing analytics tools and interfaces)
- Permissionless support for Gauges & Bribes
- Emission incentivizes fees instead of liquidity
- Native support for adding third party tokens and incentives
- veHermes lockers accumulate all fees for pools they vote emission on
- veHermes lockers increase holdings proportional to emission, no dilution
- veHermes lockers vote on emissions with circulating supply decay
- veHermes natively supports delegation
- veHermes locks are represented as non-fungible tokens to allow capital efficiency of locks, allowing locking periods from 1 week to 4 years
If all participants lock, emission decreases to 0, if only 50% of participants lock, emission is 50%, however lockers increase proportionally to emission.
Thus Hermes is ve(3,3)
Hermes’ AMMs are compatible with all the standard features as popularized by Uniswap V2, these include:
- Lazy LP management
- Fungible LP positions
- Chained swaps to route between pairs
- priceCumulativeLast that can be used as external TWAP
- Flashloan proof TWAP
- Direct LP rewards via skim
- 0 upkeep 30 minute TWAPs. This means no additional upkeep is required, you can quote directly from the pair.
- Fee split. Fees do not auto accrue, this allows external protocols to be able to profit from the fee claim.
- New curve: x3y+y3x, which allows efficient stable swaps.
- Curve quoting: y = (sqrt((27 a³ b x² + 27 a b³ x²)² + 108 x¹²) + 27 a³ b x² + 27 a b³ x²)^(1/3)/(3 2^(1/3) x) — (2^(1/3) x³)/(sqrt((27 a³ b x² + 27 a b³ x²)² + 108 x¹²) + 27 a³ b x² + 27 a b³ x²)^(1/3)
- Routing through both stable and volatile pairs.
- Flashloan proof reserve quoting.