Hats.finance — how to deposit, withdraw & claim $ HAT’s.
Hats is a Decentralized Cybersecurity Incentive Network that is directly governed through its stakeholders, which are hackers, token holders, artists, collectors, and the projects being helped. Hats aims to help DeFi become safer by turning black hat hackers into white hat hackers and by creating an ecosystem where these hackers can be attracted and rewarded for their contribution.
The beauty in Hats is that anyone can participate in the protection of an asset or protocol they have a stake in. Centralized companies did not have a community of stakeholders to share the responsibility to protect them. Decentralized protocols and projects created a community that shares responsibilities, profits and risks of a project. Hats.finance is a direct offspring of decentralization. Hats is an open & permissionless cybersecurity marketplace.
The advantage of a bug bounty vault is that it doesn’t cost anything to the project or its depositors unless there is a disclosure that would have been a lot more expensive if it wasn’t for the program in the first place, a win-win for everyone involved.
In Hats dapp you will find project vaults, where you can deposit a project token, take part in securing the project and be rewarded with $HAT’s (Will start soon) tokens while doing it. In this medium post, we will describe each one of the steps, deposit, withdrawal, and claim of $HAT’s token.
How to deposit:
Similar to all DeFi projects, intuitive with all kinds of wallets on the mainnet network.
1. Connect a wallet
2. Press on the deposit/withdraw button- a popup will appear
3. Insert the amount to be deposited- and check the terms of use and press deposit.
4. Unlimited approval popup will appear-Before you can proceed, you need to approve your token spending amount.
- If you press unlimited approval you won’t have to approve each transaction twice when depositing.
- If you choose limited approval — you will have to approve each time.{we mention it to create more transparency for Hats users}
5. Success notification will appear after the transaction will be included on the blockchain.
- When liquidity mining will start, a user would be able to click on the Hat button, at the top of the page to see his $HAT’s token break down.
How to withdraw:
- Press on the deposit/withdraw button- a popup will appear
2. On the withdrawal tab of the popup. Press the withdrawal request button and Approve the transaction on your wallet.
The withdrawal request has a 7 days waiting period.*
*Waiting period — The waiting period has been created to make sure depositors cannot withdraw funds immediately after a disclosure has been made in the platform.
3. A yellow waiting period countdown clock will appear on the vault which you requested to withdraw from
4. When the waiting period ends the clock will change to green and you will be able to make a withdrawal for the next 7 days (withdrawal period might be changed by the governance at any stage).
- If you haven’t made a withdrawal in those 7 days window. You will have to repeat sections 4–5 in this guide.
5. Insert the amount to be withdrawn and press the” withdraw and claim $HAT’s” button.
6. Approve the transaction on your wallet.
7. A notification approving the withdrawal and amount will appear.
Claiming $HAT: Will start soon
Each time you deposit, you claim $HAT’s tokens automatically.
Protocol protection mining, similar to yield farming, is the act of enlarging a bug bounty pool via cryptocurrencies to decentralized bounty protocol (DEXs). Since the primary goal of a bounty protocol like Hats is to enlarge it’s bounty pool, Hats seek to reward users willing to bring capital to it’s platform with $HAT’s governance token.
When you provide an asset to the bounty pool you can be rewarded with $HAT’s tokens in proportion to your share in the pool and the time your tokens are locked in the pool.
How does it work:
- Calculating the $HAT reward share for each pool (Vault):
PoolRewardPerShare =
HatsEmissionRate*(Time)*PoolAllocPoint/TotalAllocPoint
Calculating the $HAT reward for the user:
HatReward = (PoolRewardPerShare * UserShare ) — UserDebt
Interested in joining Hats?
Hats will succeed in achieving its goals with the help of the community that will be built around it. We are always looking for devs and security experts that are interested in joining us. If you know Solidity or React and enthusiastic about Web3, and want to contribute to the security of the Ethereum ecosystem, please drop us a line and we’d be more than happy to help onboard you.
As always, follow us on Twitter or join our Discord server and let us know what you want to help with.
