Hermes Defi: Decentralized Finance Protocol

What is Hermes Defi

Friends, imagine you have some spare money—if you leave it in the bank, it earns only a little interest, or if you keep it at home, it does nothing. In the blockchain world, there’s a way to make your digital assets (like cryptocurrencies) “work for you” and help you earn more returns. That’s what we’re talking about today: the Hermes Defi project.

Simply put, Hermes Defi (its governance token is called IRIS) is like a smart “financial manager.” It’s a decentralized hybrid yield optimizer—a combination of what we call a “yield farm” and a “yield aggregator.”

Yield Farm: Think of this as a “farm” in the digital world. You deposit your cryptocurrencies (like Bitcoin, Ethereum, etc.) into this farm, just like planting seeds. In return, the farm produces new “fruits”—Hermes Defi’s own governance token, IRIS.

Yield Aggregator: This is like a clever farmer who knows which field yields the best harvest and which crop is most profitable in each season. The yield aggregator automatically finds the highest-yielding investment strategies in the DeFi (decentralized finance) world, puts your assets where they’ll earn the most, and reinvests the profits to achieve “compound interest,” maximizing your returns.

Hermes Defi was first launched on the Polygon blockchain in July 2021, and later expanded to the Harmony network. Its core goal is to let users earn IRIS tokens as rewards by depositing other cryptocurrencies and providing liquidity (which you can think of as supplying funds to trading markets to make buying and selling smoother).

Project Vision and Value Proposition

From its inception, the Hermes Defi team has adhered to three main principles: Safe, Transparent, Fast.

• Safe: They emphasize that the smart contracts used by the project (think of these as automatically executed protocols on the blockchain) have the highest level of security mechanisms to protect user funds.
• Transparent: Users can always check the status and location of their funds, and all project operations are open and transparent.
• Fast: The team is committed to responding quickly and solving problems, constantly embracing new challenges.

Their vision is to make DeFi (decentralized finance) more accessible to global and diverse users, helping more people understand and leverage the potential of their funds. They also hope to make DeFi easier to understand and use through educational outreach.

The mission of Hermes Defi is clear: to provide all available DeFi services on one platform and continuously create new products to solve emerging problems. They believe DeFi will become a global economic pioneer in the coming years, and Hermes Defi aims to be a key player in this field.

Technical Features

As a yield optimizer, Hermes Defi’s core technical feature is its ability to aggregate yields from different DeFi protocols.

• Yield Aggregation and Optimization: It can automatically deploy user-deposited assets into the highest-yielding “farms” or liquidity pools and auto-compound the returns, thus maximizing user profits.
• Smart Contract Audit: To ensure security, Hermes Defi’s smart contracts were audited by Paladin Blockchain Security in August 2021. The team resolved all issues found in the audit before deployment, showing their commitment to technical security.
• Cross-chain Capability: The IRIS token has cross-chain capabilities. For example, via the Anyswap bridge, users can transfer IRIS tokens from one blockchain network (such as Polygon) to another (such as Harmony), increasing the token’s flexibility and use cases.

It’s worth noting that as the project developed, Hermes Defi gradually evolved into “Hermes Protocol,” introducing decentralized exchange (DEX/AMM) functionality to provide low-cost, high-efficiency trading experiences, with plans to integrate more advanced features.

Tokenomics

The core token of the Hermes Defi project is IRIS, which mainly serves as the project’s governance token.

• Token Symbol: IRIS
• Issuing Chain: Initially on Polygon, later also supporting cross-chain to Harmony network.
• Total Supply or Issuance Mechanism: According to some data platforms, IRIS has a maximum supply of 1 million tokens. However, there are also reports indicating a self-reported circulating supply of 0 and a market cap of 0, which may mean the token’s circulation or project status has changed.
• Token Utility:
  • Governance: As a governance token, IRIS holders can typically participate in project decisions, such as voting on protocol upgrades, fee structure adjustments, etc.
  • Yield Rewards: Users can earn IRIS tokens as yield rewards by providing liquidity or staking other assets on the Hermes Defi platform.

In the project’s later development, other tokens such as PLUTUS (PLTS) and HRMS were also mentioned. This may indicate an evolution of the project’s tokenomics or the introduction of a multi-token system to support different functions and incentive mechanisms.

Team, Governance, and Funding

• Core Members: Hermes Defi was originally founded by “valleyrider” and his brother in July 2021.
• Team Characteristics: The team is described as energetic and positive, always ready to tackle new challenges, and pursuing rapid development without sacrificing security. In the early days, to obtain funding from the Harmony network, some team members disclosed their identities (doxxed) to the Harmony team, which is generally seen in the crypto space as a way to increase project transparency and trust.
• Governance Mechanism: As a decentralized finance project, Hermes Defi typically implements community governance through its governance token IRIS, allowing IRIS holders to vote on major project proposals.
• Funding: There is no detailed public information about the project’s specific funding sources and treasury, but it is mentioned that the team received funding from the Harmony network.

Roadmap

Below is the roadmap released by “The Hermes Protocol” in June 2022, showing the plan for the project’s evolution from an initial yield optimizer to a more comprehensive DeFi platform (including DEX/AMM). Please note, these are historical plans and actual project progress may differ.

• Q1 2022

  • Backend Development:
    • Migrator development.
    • DEX/AMM (decentralized exchange/automated market maker) testnet and mainnet deployment based on Trader Joe V2 core.
    • sHRMS (stake HRMS to earn USDC) and xHRMS (stake HRMS to earn HRMS and partner tokens) features.
    • Dual Farms feature.
  • Frontend Development:
    • Brand new UI/UX.
    • Advanced charting and analytics tools.
  • General Items:
    • Team Dox.
    • PLTS token swap mechanism.
    • Hermes Foundation establishment.

• Q2 2022

  • Backend Development:
    • DEX/AMM official launch.
    • Bonds mechanism for Protocol Owned Liquidity.
    • hONE launch.
    • Zap upgrade.
    • Autocompounding Vaults.
    • Lending system.
  • Frontend Development:
    • Dashboard feature expansion.
    • Personal portfolio management.
    • EPNS notification system integration.
  • General Items:
    • New protocol tokenomics.
    • Improved governance strategy.
    • Certik audit (in progress, report expected April 29).

• Q3 2022

  • Backend Development:
    • Limit Orders.
    • HRMS nodes (stable yield).
  • Frontend Development:
    • Order book visualization.
    • Fiat on/off ramp integration.
    • Bridge aggregator.
  • General Items:
    • HERMES tax reporting.
    • Trade history reporting.

• Q4 2022

  • Backend Development:
    • Leverage trading/farming.
    • NFT staking.
  • Frontend Development:
    • NFT marketplace.

Common Risk Reminders

Investing in any cryptocurrency project comes with risks, and Hermes Defi is no exception. Here are some risks to pay special attention to:

• Technical and Security Risks:
  • Smart Contract Vulnerabilities: Although the project claims to have been audited and issues resolved, smart contracts may still have undiscovered vulnerabilities that could lead to loss of funds.
  • Cross-chain Bridge Risks: Cross-chain operations rely on the security of bridge technology, and bridge vulnerabilities may result in asset theft.
• Economic Risks:
  • High Token Price Volatility: As the native token of a yield farm project, IRIS’s price may drop sharply after launch—a common phenomenon for yield farm projects. Historical data shows IRIS once dropped 80% in price within a few days.
  • Post Mortem Events: In July 2022, Hermes Defi published a “post mortem” article, which usually means the project faced major challenges or made significant adjustments, potentially affecting its continuity and token value.
  • Impermanent Loss: When providing liquidity, if the prices of tokens in the trading pair fluctuate sharply, impermanent loss may occur—meaning the value of assets you withdraw is less than what you originally deposited.
• Compliance and Operational Risks:
  • Regulatory Uncertainty: Global regulation of cryptocurrencies and DeFi is still evolving, and future policy changes may impact project operations.
  • Team Operational Risk: The project’s success largely depends on the team’s ongoing development and operational capabilities.

Please remember, the above information does not constitute any investment advice. Be sure to conduct thorough personal research and risk assessment before making any investment decisions.

Verification Checklist

• Block Explorer Contract Addresses: Since Hermes Defi was initially deployed on Polygon and later expanded to Harmony, and may involve multiple tokens (IRIS, HRMS, PLTS), it’s recommended to search and verify relevant contract addresses on block explorers like PolygonScan and Harmony Explorer to confirm their authenticity and activity.
• GitHub Activity: Hermes Defi has multiple code repositories on GitHub, including frontend, block scanner, bonds, DEX core, etc. Checking the commit history and update frequency of these repositories can help assess the project’s development activity.
• Official Information Updates: Given the “post mortem” event and the name evolution (Hermes Defi to Hermes Protocol), be sure to consult the latest official announcements, documentation, and social media for the most accurate and up-to-date project status.

Project Summary

Hermes Defi (token IRIS) was launched in July 2021 as a decentralized hybrid yield optimizer (yield farm and yield aggregator) project, aiming to help users maximize returns on their digital assets. The project emphasizes safety, transparency, and speed, and is committed to providing comprehensive DeFi services on a single platform. IRIS, as its governance token, gives holders the right to participate in project decisions and earn rewards by providing liquidity.

However, the cryptocurrency market is ever-changing, and Hermes Defi has faced challenges in its development journey. In July 2022, the project published a “post mortem,” indicating that it may have encountered major events or strategic adjustments in its early stages. Subsequently, the project appears to have evolved into “The Hermes Protocol,” expanding its features to include the development of a decentralized exchange (DEX/AMM) and introducing other tokens such as HRMS.

For anyone interested in Hermes Defi or its evolved Hermes Protocol, understanding its historical background, technical features, and potential risks is crucial. In particular, the inherent token price volatility of yield farm projects and major events during the project’s development require careful consideration by investors. Be sure to conduct thorough independent research and make decisions based on your own risk tolerance. The above content is not investment advice.