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Is ICOSA Yield coming in WAVES? + HSI Auction Q&A

Updated: Nov 4, 2022

On November 13th, 6000+ Hex Staking Instances (HSI’s) will go up for auction over the course of the next 90 days. Nearly 3000 of them will be up for grabs in the first day, and the following days will have far fewer HSI’s per day. Why is this significant? Because during this period, Hedron will have to be burned for these HSI’s to be purchased, and because the current price of Hedron is low compared to its ‘ceiling’ price, all the HSI’s could be scooped up for a potential deal.

You can think of this ceiling price for Hedron as around the price where the minimum bid for one of these auctions is equal to the base cost of the HSI associated with whatever the minimum bid is. Because Hedron is more than 15 times undervalued from that point currently, it is likely that far more than the minimum bid is burnt during these auctions.

When Hedron is burned, yield is created in the form of Icosa tokens for all Icosa and Hedron stakers and additionally WAATSA NFT holders. The more Hedron is burned, the more yield will be sent to the pools. Let’s look at what might happen in regards to the timing auctions for this event and in the future. On November 13th, the auctions can be bid on and won after 24 hours. When a bidder wins an auction, they can make one of the following decisions:

- Recycle the HSI into the HSI Buyback function to mint Icosa

- Hold the HSI or make various moves with it