HTokens

HTokens are interest-bearing tokens that increase in value over time based on the supply APY of their associated money market. They act as proof of ownership for your deposited assets. When redeeming HTokens, the amount of underlying tokens you receive is determined by dividing the number of HTokens by the current Exchange Rate.

Hatom's HTokens utilize an exchange rate appreciation model. This means that as the supply APY increases, the exchange rate between HTokens and the underlying assets also rises. Unlike some systems where more tokens are issued over time, the quantity of HTokens remains constant for any given deposit. Instead, the value of HTokens appreciates over time as the exchange rate increases, reflecting the accrued interest.