Yield App’s world-class research & development team is excited to announce its roadmap to incubate Haven1 – an innovative, environmentally friendly Layer 1 blockchain, designed as a secure environment for mainstream on-chain finance.
This development is aimed at driving the mass adoption of Web3, facilitating real-world use cases that are not currently possible in the decentralized finance (DeFi) ecosystem in a safe and secure way.
The Haven1 blockchain will be powered by its native token H1, which will provide users with governance rights, be required to pay gas fees and allow holders to earn a portion of the revenues generated by the blockchain’s native protocols.
Current holders of YLD will become stakeholders in the Haven1 ecosystem through staking YLD for locked Haven1 tokens - read on for details.
To learn more, join our AMA with CEO Tim Frost and CIO Lucas Kiely at 11:00 am UTC tomorrow (Wednesday, 18 January 2023).
In 2022 alone, more than $3.9 billion was stolen in crypto hacks and exploits, with the DeFi sector accounting for a staggering 80.5% of these losses, according to a recent report from Immunefi. This has led to a loss of faith in the security of blockchain technology, which has contributed to regulatory uncertainty and stifled the adoption of Web3.
To address these challenges, we are thrilled to introduce Haven1 – a secure, environmentally friendly Layer 1 blockchain. Developed by the highly experienced team behind Yield App Labs, the Web3 research & development arm of Yield App, Haven1 is a blockchain that combines security and privacy, paving the way for large-scale institutional and retail capital to enter the rapidly evolving Web3 arena.
Haven1 meets the needs of institutional investors and users who want to access the crypto ecosystem in a secure manner via a provable identity framework which keeps the risks of hacks, exploits and other malicious activity on the network to a minimum. In addition, its architecture enables the development of innovative use cases which have the potential to attract trillions of dollars to on-chain finance.
Haven1 is built using an environmentally-friendly Proof of Authority (PoA) consensus mechanism. PoA is a reputation-based mechanism that leverages the value of identity and reputation of block validators. Both Haven1’s validators and participants will be required to complete identity verification before using the network.
During the transaction validation process, Haven1’s network validators will be required to verify the user’s wallet address against the anonymized data stored on the blockchain. This checkpoint ensures that the user is not the subject of sanctions or other regulatory restrictions.
If participants have not completed the required identity verifications, transactions will not be accepted by validators. If a user becomes the subject or regulatory restrictions, their ability to use the network will be restricted to withdrawal requests only.
This mechanism is designed to foster community trust in Haven1, ensuring all interactions on the network are secure and in line with a rapidly-evolving regulatory landscape. This proposition is designed to meet the needs of retail, professional and institutional investors alike through adherence with strict compliance requirements.
Real-world use cases
Haven1’s provable identity framework facilitates exciting use cases that would not be possible in the permissionless DeFi ecosystem. For example, it allows for the development of reputation-based on-chain lending underpinned by real-world credit scores in a similar fashion to traditional loan risk management best practises.
In today’s decentralized system, the only form of reliable lending that is possible is overcollateralized lending. This requires the user to post more collateral than the amount being borrowed, making use cases such as traditional mortgage lending nearly impossible.
Not only can provable identity facilitate such reputation-based lending solutions, it can also be integrated with real-world assets for proof of ownership. For example, non-fungible tokens (NFTs) have the potential to be utilized as proof of property ownership, as well as in other real-world scenarios.
Furthermore, Haven1 enables more efficient exchange and settlement of transactions through tokenized digital representations of assets such as bonds and commodities. This has the potential to migrate the trillions of dollars currently exchanged through traditional financial markets on-chain.
The H1 Token
The Haven1 ecosystem will be powered by its native token (H1), which will serve three distinct purposes: network governance, gas fees, and participation incentivization.
H1’s governance function extends to the three core protocols that are being developed on the Haven1 network: an automated market maker, a money market (borrowing and lending) and a derivatives platform. This will allow holders to vote on decisions and suggest proposals that affect the operation of the network, helping to create a secure environment for on-chain finance.
In addition, H1 token holders will have the opportunity to receive rewards generated by the aforementioned protocol applications. This provides users a benefit to holding the token and aligns the interest of the token holders with the network.
H1 and YLD
The development of Haven1 is exciting news for holders of the YLD token – the membership token of the Yield App platform. All holders of YLD will become stakeholders in Haven1 through staking their YLD for locked H1 tokens starting 1 January 2024.
As such, the launch of Haven1 will be bootstrapped by up to 40,000 existing YLD token holders – an industry-first design which will turn Yield App members into stakeholders in a Layer 1 blockchain with the potential to disrupt the entire Web3 ecosystem as we know it.
The estimated circulating supply of 2 billion Haven1 coins by January 2028, will be allocated largely to community initiatives and developer funding grants that will ensure on-going growth of the Haven1 ecosystem. Final tokenomics will be released later in 2023.
For a full overview of what this will mean for you as a YLD token holder, join our AMA with CEO Tim Frost and CIO Lucas Kiely at 11:00am UTC tomorrow (Wednesday, 18 January 2023).
The future of Haven1: Complementary to Ethereum
The Haven1 network is complementary to Ethereum and designed to support the Ethereum network as a side chain. In the future, as roll-up technology matures, it’s Haven’s goal to transition from a side chain directly to a roll-up that utilizes Ethereum as a settlement layer.
To demonstrate Haven1’s commitment to Ethereum and the ongoing contributions of the Ethereum Core Development Team, the Haven1 Foundation will provide donations to the Protocol Guild on an annualized basis.
Haven1 is an exciting next iteration of mass market on-chain finance which will be perfectly positioned to drive both retail and institutional adoption of Web3. Yield App community members have the unique opportunity to support the growth of this ecosystem and benefit as it develops and matures.
To learn more about Haven1, click here to explore the full litepaper.
DISCLAIMER: The content of this article does not constitute financial advice and is for informational purposes only. The price of digital assets can go down as well as up, and you may lose all of your capital. Investors should consult a professional advisor before making any investment decisions.