How Hespair works

Hespair your coin with the markets. A launch is not only a token and a pool; it is a continuously funded position on a stock-linked market, and the people who hold the token decide when to take the money off the table.

What it is

Hespair is a launchpad on Elysium. Launching through it creates four things in one transaction: the token, its market, the vault that collects the market's fees, and the governor the holders vote through. They are wired to each other inside that transaction and nobody can rewire them afterwards.

The creator chooses two things: the stock-linked market the launch is paired with, and what its fees do there. Everything else — the supply, the opening price, both fees, the shares they are split into, the whole voting rulebook — is the same for every launch and was fixed when the launchpad itself was deployed.

A launch

One billion tokens are minted once and all of them go into the HYPE pair. The creator receives none. The liquidity belongs to the vault, which has no function that can take it back out, so it cannot be pulled.

The creator receives no tokens and no powers. Once the launch transaction has gone through, the only lever anybody has over a launch is the holders' vote.

The whole supply sits as a single range underneath the opening price, which means the launch commits no HYPE of its own. The market opens at a fully diluted value of about a hundred HYPE, and the first buyers are buying from that range.

A launch token's address can be worked out before the transaction is sent, so somebody could open its pool first. A pool already standing at the published opening price is simply used. One standing at any other price would force the launch to land with HYPE of its own alongside the tokens, so it is refused — the creator sends the launch again and it lands on a different address instead. The site does that automatically.

How fees become capital

A trade on the pair pays two fees, and they are not the same fee. There is no tax on the token itself: a wallet that holds it and never trades pays nothing, and a transfer between two wallets costs nothing either.

The Hespair fee

— of the HYPE a trade moves, taken in HYPE, in both directions. It is charged on the HYPE that actually changed hands — never on an amount that was asked for and not traded. A buy that sets a price limit and would only partly fill is refused outright rather than charged for HYPE that never moved.

It is split three ways:

• — becomes this market's own capital.
• — goes to HESPAIR holders.
• — is set aside against the cost of getting an execution wrong. That money can only ever be paid to a market's own vault; there is no path by which it reaches anybody else.

The pool's own fee

— of the trade, earned by the liquidity the vault owns. It arrives in whichever currency the person traded in, so it comes in two halves:

• The token half is burned. A Hespair launch's supply only ever goes down — and it is this fee that burns it, not every trade on its own.
• The HYPE half becomes capital, after a tenth of it is sent to HESPAIR holders.

What a trade costs

About — together, before gas and before the price moves while the trade goes through. The two do not simply add up: buying with an exact amount of HYPE, the Hespair fee comes off the top and the pool's fee applies to what is left; selling, the pool takes its share first and the Hespair fee is taken out of the HYPE that comes back. The two routes land within a thousandth of each other here, and the figure above is worked out from the two fees rather than written down.

Neither fee walks into a vault on its own. Anybody can push the Hespair fee through to the markets it was earned for, and anybody can pull the pool's fee in, at any time, for any market — but until somebody does, it sits where it was earned. Nothing here happens on a timer.

The capital sits in the vault until there is enough of it to be worth deploying, and then it goes to work on the market the launch was paired with — unless the holders have voted to stop that, which they can.

The two paths

Market-making

The HYPE stands as a bid a little under the instrument's price, in a band, and fills as the instrument gets cheaper. It earns the spread. Income can be pulled back without closing anything, so this path can pay holders while the position is still standing.

Long

The HYPE buys the instrument outright and holds it. Nothing comes back until holders vote to close. A position showing a gain on paper is never counted as claimable — only money that has actually come back is.

A third path, short, exists in the design but has no venue on Elysium today, so a launch cannot select it. The launchpad refuses it rather than pretending it works.

The vote

Holders vote on three things, and on nothing else: closing the position, stopping new capital from going out, and letting it go out again. There is no vote that can send the money somewhere new, because there is no function to vote for. Stopping new capital leaves everything else working — the position can still be closed, money that comes back is still settled, payouts still open and holders still claim.

Anyone holding one per cent of the supply can open a vote; it runs for forty-eight hours; it counts if a tenth of the eligible supply voted in favour, and it passes if three fifths of everything cast was in favour. A vote that passes then waits — before anybody can carry it out, so a holder who was not watching has time to see it coming. After that wait it can be carried out for three days, and then a new vote to close has to wait a day. A vote to stop or restart new capital never waits on that, because the market that has just closed a position is exactly the one that might need stopping.

Voting weight is read at a block fixed before the vote opened. Buying after the vote is open buys no votes, so nobody can walk in at the end and vote himself a payout. The vault's own balance and the burned tokens are not counted in the eligible supply.

A passed vote to close expresses the decision to get out. It cannot promise a price: if the instrument has thin liquidity the exit may take more than one transaction, and it is bounded by a slippage limit either way. The floor the vote was opened with travels with it, so the execution cannot be re-priced afterwards.

The book

Each launch keeps three balances and never mixes them. The site shows them apart because the difference is the whole point:

• Collected and waiting — HYPE the fee has paid in that has not been put to work yet.
• At work in the position — HYPE standing on the market. It is not claimable and it is never counted as if it were.
• Settled and claimable — HYPE that has come back and is waiting for its owners.

When money settles, a payout is opened. Everybody's share is their balance at the block that payout was opened on, divided by the eligible supply, and it stays claimable forever. One launch's money can never pay another launch's holders.

Holding HESPAIR

Two shares reach the Hespair treasury from every launch, both before anything is allocated to a strategy: — of the Hespair fee, and a tenth of the HYPE half of the pool's own fee. The treasury pays what it holds out to HESPAIR holders, pro rata, and it can open a payout once a week.

It works exactly the way a launch pays its own holders: a share of the supply, in HYPE, claimable whenever you get round to it. HESPAIR has the same supply as any launch — one billion — and the treasury's own balance is left out of the eligible supply so it cannot pay itself.

Every number

These are the launchpad's constructor arguments. They were published once and cannot be changed; where a setting can be switched off, zero is what switches it off.

The chain

Every launch

HESPAIR

Governance

The limits

Every approved market carries its own limits, and the strategy cannot step outside them whatever the vote says. These are the defaults a market is approved with:

A market has to be approved before a launch can pair with it. A launch pointed at anything that has not been approved is refused.

Addresses

Every contract Hespair runs on, on Elysium. A dash means the address is not published yet; it is never a placeholder for one that is.

Each launch gets its own vault, token and governor, created by the launchpad. Their addresses are on that market's own page.