What is Hermes Finance?

What is Hermes Finance?

Hermes finance can be two things. One is a brand new channel for purchasing OHM bonds. It’s the same bond with Olympus DAO’s but wrapped in NFT Format. Another is a secondary marketplace to trade OHM bonds. As the word ‘secondary marketplace’ implies, it includes reselling the bonds that users have already bought.

What is the point of Hermes Finance?

Our mission is to make locked assets tradable. Locked assets by their nature involve the "time" factor. It means that the assets are always accompanied by an obligation to wait a certain period to receive or withdraw corresponding assets. In the case of OHM bonds, the vesting period ranges from 5 days to sometimes more than a month. And this "time" factor is what generates the needs for the secondary trade. Exchange can occur between the people who do not want to wait for the bonds to mature to the fullest and those who can willingly wait on behalf of the counter-party. And Hermes Finance is a bridge for those people.

Initially, the OHM bonds were not designed to be exchanged. But thanks to the Olympus v2 upgrade, and the introduction of Hermes Finance, OHM bonds are now tradable. Sellers are the people who want to claim their gOHM early even with having to pay extra fees. Buyers are usually the long-term investors of OHMs who wish to increase their position size.

How do I participate in Hermes Finance?

Hermes Finance's service is targeted at Ohmies specifically. Just like Olympus Dao, there are two primary services: bonding and staking. Bonders can buy OHM bonds in NFT form and receive discounted OHM tokens with extra benefits. Stakers can stake their gOHM tokens in return for more gOHM tokens. How it works and the benefits are further described below.

How Can I benefit from Hermes Finance?

1) For Bonders

There are two benefits for Bonders. The main one is that the Bond buyers can claim OHM tokens early even in the middle of vesting period. All they have to do is use the service called 'Instant Claim'. OHM bonds purchased through Hermes Finance are automatically wrapped into NFTs, allowing people to transfer their NFT's to others. And the process of which is instant because there is a large pool of gOHMs provided by the gOHM stakers (liquidity providers). Instant claim users will pay certain fees for the early claim.

The second benefit is a chance to win the lottery. The bond buyers will be automatically given an opportunity to play the lottery and earn extra rewards. The source of the lottery prize comes from Olympus DAO FE rewards, an incentive provided by the Olympus DAO to attract third parties' participation for selling their product. Hermes Finance can receive the grant proportionate to the amount of OHM bonds sold through its channel.

2) For Stakers

gOHM stakers can add yields on top of their already decent gOHM staking yields. The extra profits come from the fees generated by the instant claim users. Stakers provide their gOHM liquidity to instant claim users. In exchange, they receive the bond with remaining vesting period as well as the fees paid by the instant claimers. To simply put, it's compensation for the time waited in place of instant claimers.

Who created Hemes Finance?

Hermes Finance was ideated by Caduceus and built by a distributed pseudo-anonymous team.