How TOR Works
The information on this page and all other pages owned by, operated by, or related to Hector Network are for educational purposes only and does not constitute any kind of advice. Please read our Disclaimers page first.
TOR is an ERC20 token which can be minted only under specific circumstances. If there is less than 45% of TOR in the Liquidity Pools, Minting is available. If the Pool consists of more than 65% TOR, redeeming is available. Balanced Pools are fundamental to combating de-pegging and or a flooded market.
Expansion: The percentage of TOR in the Curve Pool decreases, so the demand for TOR is high. The price of TOR against USDC/DAI also increases slightly, so minting TOR can be slightly profitable. Users will take advantage of this profit margin by Minting TOR and re-balancing the percentage of TOR in the Curve Pool.
Contraction: The percentage of TOR in the Curve Pool increases, meaning that the demand for TOR is low. The price of TOR against USDC/DAI also decreases slightly, so redeeming TOR can be slightly profitable. Users will take this profit by redeeming TOR and rebalancing the percentage of TOR in the Curve Pool.
We store 100% of the DAI used in the Minting process in the Hector Network Treasury. This allows the company to guarantee each TOR in circulation. Building security and trust for our users is imperative, and in light of other stables de-pegging it is important to be able to back each token we have created. If a user redeems their TOR when the pools allow it, the DAI they receive comes from the Hector Network Treasury.