As we prepare to launch several projects, we're eager to provide a general update to our community.

We are steadily approaching our end goal, thanks to the daily progress we're making toward our vision. Achieving our objectives will bring about a significant transformation in cross-chain interoperability and the flow of liquidity within protocols.

This will address crucial challenges and drive mass adoption. Our future-focused approach and effective team collaboration keep us moving forward in an organized manner.

Let’s delve deeper into the state of development of our current products and upcoming projects.

Tao Bridge

Starting with the Tao Bridge, which enables the Bittensor community to unlock DeFi opportunities with their TAO via a highly efficient blockchain like MultiversX, known for its security, speed, and affordability.

We deeply admire Bittensor and believe a project like that is crucial for the future of not just the crypto space but also humanity, as it addresses the major challenges AI faces today: centralization, siloed and isolated work, which pose risks and hinder the technology's potential. We are committed to the vision of subnets and dynamic TAO, convinced that this ecosystem is as groundbreaking as Ethereum or Bitcoin.

We will continue to support Bittensor wherever possible, and our bridge will also expand to other chains with Hatom V2.

The TAO Bridge, deployed on the Bridge Section on our dApp and accessible through www.wtao.com, will launch on the Mainnet in 14 days, on March 27th. You can follow the countdown on the Lending Page.

Given that our main priorities are security and stability, this period will be primarily focused on quality assurance to ensure a flawless Mainnet launch.

The launch will also introduce TAO Liquid Staking, along with the integration of both wTAO and swTAO on the lending page. This allows Bittensor users to leverage liquid stake, employ short or long strategies, among other DeFi strategies, or simply access stablecoin liquidity while maintaining exposure to their TAO.

Up to $1M will be distributed as additional incentives on top of the supply APYs at the launch of the wTAO and swTAO money markets, with $200K allocated for the first month specifically for bootstrapping.

Initially, 70% of rewards will go to liquidity providers, and 30% to those using HTM to boost their lending positions. This changes to a 50-50 split in the second month, and by the third month, all incentives are directed through the Booster. This approach encourages early participation and sustained engagement with HTM.

Introducing TAO to MultiversX will result in the creation of Liquidity Pools (LPs) on both AshSwap and xExchange. These LPs will be incentivized by both entities, and Hatom will distribute extra rewards at launch. The goal is to make MultiversX a one-stop hub for TAO holders.

Upon stabilizing the volumes, there will also be plans to integrate it on AshPerp. Furthermore, with the release of USH, users will have the ability to mint it while retaining exposure to their TAO.

The TAO Bridge and TAO Liquid Staking smart contracts have been audited by RunTime Verification and Arda, while penetration testing and DevSecOps have been performed on our infrastructure by CertiK.

We're excited to announce our exclusive partnership with TAO-Validator one of the top 5 validators on Bittensor. TAO-Validator has been extremely helpful and supportive from day one. By sharing 50% of its service fee with its stakers, TAO-Validator enables Hatom to offer an optimized Staking APY to its users.

Since our initial reference, Bittensor has grown sevenfold, becoming the largest AI project in the crypto sphere. We reiterate our commitment to contribute to such technology and hope to address some of its current DeFi challenges.

Syfy

Moving forward, today marks a significant milestone, not only for our decentralized protocols but also for our development companies, which currently stand as the sole and primary contributors to the Hatom Labs and Soul Labs.

We’re excited to unveil Syfy the evolved identity of Hatom Labs and Soul Labs, now serving as the parent entity for our burgeoning development companies.

Organization is crucial for scalability, which is why Syfy was established to cultivate an environment where our teams can collaborate more seamlessly, enhancing our effectiveness and efficiency. At the same time, we remain committed to upholding the financial independence of each project, supported by its own community of funding contributors.

Feel free to explore our website at syfy.io for more information.

Booster V2

The Booster V2 will introduce a range of new features and opportunities for HTM holders:

Optimized Position Boosting: Previously, boosting was done individually for each money market, necessitating HTM token distribution and periodic rebalancing due to price fluctuations. With Booster V2, the system now considers the overall position, eliminating the need for manual rebalancing.

Gas Fee Reduction: Booster V2 implements optimizations that result in reduced gas fees, making transactions more cost-effective for users.

Incorporation of Governance: Users staking HTM tokens gain voting rights directly within the Booster, allowing them to participate in governance decisions while maintaining their staked positions. (Note: Only HTM tokens are considered for governance; LP tokens are not included.)

Enhanced Boosting Mechanism: The Booster V2 enables LP Tokens to boost positions within the Booster, leveraging trading fees from swaps and farm incentives while boosting lending positions.

Smart Contract Completion: The Booster smart contract has been completed and audited by Arda, ensuring security and reliability.

Frontend Implementation: The frontend design for Booster V2 has been successfully implemented, providing users with an intuitive interface.

Collaboration with xExchange: Exploration is ongoing for collaboration with xExchange to enable LP creation, farming, and meta-staking within the Booster.

Upon finalization of testing, we will launch the Booster V2 on the devnet to gather community feedback and begin preparations for the mainnet release.

Soul

Before delving into Soul developments, it's essential to summarize its core functionality briefly:

Soul seamlessly connects different lending protocols and blockchains, facilitating lending and borrowing across platforms like Aave, Compound, and Hatom, consolidating liquidity and users' borrowing capabilities. Utilizing LayerZero and other messaging layers for cross-chain communication, Soul bypasses asset bridging or synthetics, unlocking novel DeFi strategies and solidifying its position as the ultimate solution for cross-lending dilemmas.

Soul V1 will be permissionless, holding censorship-resistant features, incorporating multiple redundancy mechanisms, and providing support for various DApps.

We're thrilled to announce that, following the launch of the Tao Bridge in 2-3 weeks, we will introduce the Soul website. This platform has been meticulously crafted over 250 days to not only provide a comprehensive overview of our vision but also to offer an engaging and captivating experience that promises to be memorable.

Regarding the app, significant progress has been made on the V1 protocol, including:

Smart Contract Development and Testing:

• Completion of the initial phase of smart contract development.

• Conducting advanced testing to ensure the system's robustness.

• Establishment of a fully functional proof of concept.

Successful deployment and testing on the Goerli (Ethereum Testnet) and Mumbai (Polygon Testnet), leveraging LayerZero for seamless operation.

Feature Enhancement and Protocol Optimization:

• Enhanced testing procedures to bolster system resilience.

• Integration of advanced features and significant code refactoring for optimization.

• Incorporation of various communication methods, including LayerZero, Axelar, CCIP, and Wormhole, into Soul framework, enhancing its resilience and flexibility. This allows Soul to maintain operation through alternative protocols if the primary one is temporarily paused.

Website Development and Documentation:

• Nearing the completion of the v1 app, with final touches being applied.

• The preparation of comprehensive V1 documentation and the Yellow Paper, available upon Soul’s public launch, offering detailed insights into the platform's infrastructure and capabilities.

USH

Recognizing the critical need for stable liquidity within the ecosystem, we have positioned ourselves at the forefront of providing a solution by introducing USH, the first native, decentralized, and over-collateralized stablecoin on MultiversX.

As market conditions have improved, we have observed a growing demand for stablecoins in the ecosystem, evidenced by the utilization rate in the Lending Protocol spiking to over 90% several times in recent months.

Therefore, our goal is to tackle the current challenges faced by users by creating a robust product that will not only help them hedge against market volatility but also open up better opportunities to trade the markets and generate yield.

We're happy to unveil the USH website, now live with a sleek and intuitive user interface, designed for ease of use, which ensures that interacting with the protocol is straightforward and accessible for all.

You can access it now through this link:

For the technical side, we’re advancing steadily and we’ve accomplished the following milestones:

Lending Protocol Facilitator:

• Coded the first version to support multiple discount factors for different collaterals.

• Implemented tracking of borrowing effectiveness to enable earnings forecasting for the module and support minting processes.

Isolated Pools Facilitator:

• Coded the first version of Isolated Pools Facilitator.

• Use of EGLD or sEGLD as collateral, with positions stored always in EGLD to benefit the protocol through Liquid Staking and lending interest.

• Virtual account implementation for converting sEGLD earnings into USH, functioning like liquidation where users deposit USH for a higher amount of HsELGD.

Staking Module

• Coded the first version of the Staking Module that allows users to stake and unstake without any restrictions.

We're currently focusing our efforts on the following tasks:

• Implementation of HTM Booster in the discount model in the Lending Protocol.

• Implementation of different depeg strategies and brainstorming further potential “soft” depeg mechanisms.

• Research and implementation of rewards model for Staking Module.

• Research and implementation of Boosted Vaults Facilitator.

• Review and stress-test the first version of the code.

Upon launch, USH will be integrated into various protocols and AMMs across the ecosystem, further increasing both its utility and liquidity.

The opportunities will be vast, enabling users to engage in a wide range of activities such as yield farming, staking, and arbitrage, all while leveraging a stable and reliable asset.

Regarding the USH Airdrop campaign, it will continue until the official launch of USH, rewarding all users who have actively participated in the initiative.

Hatom V2

It is clear by now that we are driven to build a more robust, interoperable, and secure DeFi space, removing the current barriers that hinder users' capabilities to seamlessly interact with different blockchains.

Through Hatom V2, we will introduce Hatom's cross-chain architecture, designed from the ground up for interoperability.

This approach will elevate the protocol to unprecedented levels, enabling its deployment across various blockchains and facilitating seamless connections between them through Soul.

By enhancing interoperability, Hatom V2 aims to foster a more inclusive and accessible ecosystem. This expansion will not only broaden the protocol's reach but also significantly increase its flexibility and utility, allowing users to interact with a diverse range of assets and products across different chains.

We’re thrilled to share that we are currently crafting the V2 redesign of the Hatom webpage. Anticipate a jaw-dropping transformation that will truly astonish, blending cutting-edge design with an unparalleled user experience, elevating it to a dynamic, interactive hub, and making every interaction more engaging.

Good things take time, but we are confident that the release of V2 website will take place in the second quarter of this year and will officially mark the start of our journey into the cross-chain landscape. We are excited about the future and we truly believe that this will mark the beginning of a new era for Hatom.

It's crucial for us to develop rapidly without sacrificing the quality or the security of each product. We're strategically allocating resources to ensure smooth progress in every area of our work. As we push forward, we believe that the launch of Soul will be the most important milestone due to its massive potential and disruptive technology.

We would like to thank you all for the unwavering support you've shown over the past few months; it truly fuels our passion to push daily and make strides toward achieving our ambitious goals.