Terms of The Sale:
- IDO Type: Refundable
- Total Raise: $1,000,000
- PEG: TBC
- Token price on public round: 0.0275
- Listing: CEX: TBC; DEX: WAGMI, Kinetix
- Token Unlocks: 66% at TGE and 34% after 180 days
- Ticker: HOV
- Blockchain Network: Kava EVM
- FDV: 27.5M USD
- Token Supply: 1,000,000,000
- Initial Market Cap: $6,990,000
- Initial Circulating Supply: 254,181,818
- Hard Cap: $3.27M
- Token Contract Addresses:
- HOV: 0xCe82db637A2D750380ef27063518eAa263fbe10E
- esHOV: 0xD3452d932A81C1221C1Ba331852554cBBEF8c652
What is Hover (HOV)?
Yield is a foundational aspect of the DeFi space. Yet, the vast majority of DeFi yield opportunities die out after a handful of years due to counter-intuitive emissions and unsustainable gimmicks (aka Ponzi-nomics). Hover was built to fix that problem. By joining network-level block rewards with dApp composability, Hover has created a roadmap for bringing long-term, high-value yield to the DeFi space. This fusion of infrastructure and dApps creates a “DeFi middleware” that bridges chain yield and DeFi composability. At a high level, this middleware rollout will take shape in three phases, with the $HOV token supporting each one.
Phase 1 - Non-custodial lending markets
Phase 2 - Fixed-yield products
Phase 3 - Peer-to-peer lending market
Hover’s initial deployment is a non-custodial lending market on the Kava Chain. Kava was chosen due to its significant TVL, growing EVM ecosystem, and interoperability with multiple other Cosmos zones. With the close support of Kava and other strong partners, Hover has become the largest EVM lending protocol on Cosmos in terms of TVL. The Hover community has grown to support:
- 20.3k X (Twitter) followers
- 19.7k Telegram community members
- +15M USD in TVL across all markets
What makes Hover (HOV) unique?
Hover’s unique value proposition centers around its focus on multi-year token sustainability and scalable yield generation. Rather than solely relying on token-boosted emissions to drive demand, Hover has integrated its core token ($HOV) into protocol operations.
Within Phase 1, this takes the form of the Hover Staking Program (HSP). The HSP provides $HOV stakers with a variety of benefits, such as discounts on borrowing fees, liquidation rebates, and more. These benefits integrate the token into protocol operations, creating organic demand for $HOV and benefiting token holders and platform users directly.
Phase 2 of Hover’s deployment will offer smart-wallet support, which creates fixed-yield opportunities between liquid staking (LS) technologies, on-chain hedging facilities (e.g. dYdX, Kinetix, etc.), and other appropriate yield services. In doing so, Hover can offer $HOV stakers a variety of risk-adjusted USD-based fixed yield positions. Because the yield is block-reward-based, the value is connected to an endless emission cycle of a high-market-cap coin rather than a limited supply of comparatively low-market-cap tokens.
Phase 3 of Hover will facilitate short-term, high-value loans via on-chain contracts for P2P lending. This will allow lenders and borrowers to exchange custom, fixed-rate positions. We know this is an in-demand service, given the utilization of fixed-rate pools on AAVE, and we will work with partners to research undercollateralized P2P options.
What is Hover (HOV) roadmap?
Hover (HOV) revenue streams
The Phase 1 Hover lending protocol sources revenue through two primary routes:
- Borrowed asset repayment. This is when a user borrows a set amount of money at a certain interest rate and repays at a later date. For example, Alice borrows $100,000 USDC at an average of 8% for 1 year. In 1 year her repayment will be $108,000. Hover will collect a percentage of the $8000 interest paid. This applies to every loan across every market on Hover.
- Auctions (aka loan liquidations). In the event that Alice is unable to repay her loan herself, or if the market shifts such that the value of Alice’s loan exceeds that of her collateral, the platform will algorithmically offer a portion of her collateral for sale to repay her loan. Assume that Alice deposited $200,000 WBTC to collateralize the USDC loan. Hover will take $20,000 of that WBTC collateral, offer it for liquidation on the open market as USDC, then repay part of her loan in order to maintain overcollateralization. A percentage of each liquidation is kept by Hover as revenue.
As such, Hover generates revenue in an up market (loan and borrows) or a down market (liquidations). The tokenomics for Hover incentivizes the growth of both of the platform's revenue centers.
In Phase 2, the Hover yield product will source revenue through fees taken from block rewards and various hedging facilities, such as decentralized perpetual swap protocols.
Phase 3 will take a match-making fee per loan position.
What is Hover (HOV) marketing strategy?
Hover deploys an omnichannel marketing plan to build awareness, interest, consideration, and adoption. Each channel utilizes tactics optimized for that channel in support of acquisition, engagement or retention. To do this, campaigns are developed that support core objectives with our target audience to create a cohesive customer journey.
Hover’s product is designed to be institutional-grade with retail accessibility. To that end, our target markets are within the institutional and retail spaces, the latter being our primary market segment. Primary target geographies include APAC, EMEA, & LATAM, with dedicated campaigns for APAC audiences.
In building Hover’s prominence as a brand within the Kava ecosystem, Hover partners with other Kava ecosystem projects as well as other industry products and services. Co-marketing ensures a successful partnership that facilitates cross-pollination of each partner’s user base for mutual benefit. By regularly hosting co-marketing events such as Twitter Spaces and AMAs with these partners, Hover will provide a platform to address community questions and educate its users on the product and partnerships.
Hover is represented across various social media and community platforms and is currently deployed on Twitter, Medium, LinkedIn, and Telegram. As the landscape of social media in web3 continues to evolve, Hover actively identifies novel channels and assesses the ROI for deploying on them. Strategically, Hover is reducing the friction for the end-user and community by providing multiple channels to stay up-to-date on important announcements, media, and campaigns.
What technologies has Hover (HOV) created and used?
- Hover is built natively on Kava Chain and is working with their team to leverage their Cosmos SDK and Kava EVM co-chain architecture to access a broader ecosystem.
- The Hover team has architected a unique tokenomics structure and collaborates with external consulting firm Ledger Works to support market operations.
- The lending protocols and work associated with on-chain operations are being deployed in partnership with Rome Blockchain Labs.
- In addition, Hover is employing a KYC-focused digital identity system via Quadrata for ensuring that sanctioned and blocked actors will not be able to procure xHOV to receive Hover Rewards.
- Hover is also working with Rep3 to create a tiered NFT program to incentivize community events and educational tracks.
- All on-chain technology (e.g. smart contracts) have been audited by WatchPug.
What are Hover (HOV) token utilities?
HOV: the standard, tradable token. HOV can be staked and converted to esHOV or xHOV at a 1:1 ratio.
esHOV: a staked, non-transferable version of HOV. esHOV allows access to the Hover Staking Program.
xHOV: a staked, non-transferable version of HOV that requires KYC to verify eligibility. xHOV allows access to Hover Rewards.
HOV and esHOV can be converted to xHOV at any time upon completion of the KYC process. Both esHOV and xHOV can be converted back to tradeable HOV. This requires a 180 day unstaking period, with the option to convert in as little as 15 days with an amount burned.
Hover Staking Program
The Hover Staking Program offers governance voting rights and rebates on borrowing and liquidation fees. The rebates are a percentage off of the borrow and liquidation fees given in esHOV. esHOV holders qualify for a tier based on the amount of esHOV they hold. This tier, along with the pair/asset being borrowed or liquidated and the size and duration of the position, determine the amount of their rebate.
Hover Rewards
Upon completing KYC to confirm eligibility, users can optionally convert their HOV or esHOV to xHOV, enabling them to receive Hover Rewards along with all the benefits of the Hover Staking Program. Hover Rewards are generated by the fees collected through regular protocol operations.
Who is the team of Hover (HOV)?
Vincent Wu
- Former director of the North American institutional sales team at Crypto.com.
- Worked for digital asset liquidity aggregators, trade desks, and OTC venues.
- Web3 Native since 2016.
Aileen Dauz
- Worked in data analytics at the United States Dept. of Veterans Affairs.
- Licensed pharmacist with experience in pharmacoeconomics.
- Previously worked with Rome Blockchain Labs
Who are the partners of Hover (HOV)?
Kava
Kava Chain is a secure, lightning-fast Layer-1 blockchain that combines the developer power of Ethereum with the speed and interoperability of Cosmos in a single, scalable network. Committed to fostering innovation and growth, Kava Chain is a trusted choice for developers and users worldwide. For more information, visit: http://kava.io
Ledger Works
Ledger Works partners with DeFi companies to operationalize next-generation risk management solutions. By leveraging real-time computational rules, continuous execution of deterministic and simulation models, and real-time market surveillance, Ledger Works empowers businesses to turn risk into a competitive advantage. For more information, visit: https://www.lworks.io
Rome Blockchain Labs
Rome Blockchain Labs (RBL) is a global, private blockchain development firm that specializes in launching expertly run DeFi and blockchain protocols. They are the tech team behind network-leading lending protocols such as BENQI, Moonwell, and the SAVAX liquid staking system. Hover’s close advisor and RBL’s CEO, Alexander Szul, is supporting the launch and go-to-market of the Hover protocol. For more information, visit: https://romeblockchain.com/
Pyth
Pyth Network is the largest first-party financial oracle solution delivering real-time market data to over 20 blockchains in a secure, transparent manner. Pyth supports 250+ real-time price feeds across major asset classes including digital assets, equities, ETFs, FX, and commodities. The network comprises some of the world’s largest exchanges, market makers, and financial services providers contributing their proprietary price data on-chain for aggregation and distribution to smart contract applications. Thanks to Pyth's innovative pull oracle design, applications can effortlessly “pull” the latest Pyth price onto their native blockchain on demand. For more information, visit: https://pyth.network/
Quadrata
Quadrata is a passport network bringing the identity and compliance layer to DeFi applications on existing public blockchains. Smart contract applications are able to leverage Quadrata’s proprietary technology to natively access KYC/AML status, country of residence as well as credit reputation and accredited investor status of Quadrata passport holders. For more information, visit: https://quadrata.com/
Advisors
- Alexander Szul, Co-founder & CEO of Rome Blockchain Labs
- Lucia Zheng, Founding Partner at Arcanum Capital
- Gerard Daché, Founder of Government Blockchain Association