Documentation
Don’t take our word for it, educate yourself on how TOR works.
In early 2022 TOR was audited by Certik, a leading and trusted security firm. You can view the results of that audit at any time.
TOR is an ERC20 stablecoin based on the FTM network, and is now available on other chains. It is developed and maintained by the Hector Network team and integrated with the Hector Network Ecosystem.
It is designed with flexible collateral ratio support in both mint and redeeming processes. The collateral will go to the Hector protocol treasury.
In early 2022 TOR was audited by Certik, a leading and trusted security firm. You can view the results of that audit at any time.
1. The demand for TOR, measured by the percentage of TOR tokens in the Curve Pool, must be lower than a threshold for the protocol to enable mint or higher than another threshold for the protocol to enable redemption. These criteria can help protect the TOR supply from being out of sync with the market need.
2. The TOR liability percentage of the protocol, measured by TOR supply against the treasury value, must be lower than a threshold (max value is 100%) for the protocol to enable mint or must be higher than another threshold for the protocol to enable redeeming. These criteria can help protect the TOR supply always to be backed by the protocol treasury.
3. The mint/redeem buffers for TOR function like a pool. When minting/redeeming happens, the liquidity inside the pool will shrink. Once the pool is empty, no more minting/redemptions are allowed. The pool will be automatically refilled bit by bit over time. In general, Hector Network maintains the pool at the upper limit. These criteria can help protect the TOR supply from drastic changes, especially when whale funds are involved in market manipulation.
The TOR curve pool is the primary liquidity of TOR; it also represents the demands of TOR. For both expansion and contraction:
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 rebalancing 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.
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