Hector Network Review

Hector Network

Hector Network

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Open Dapp

Basic info

  • Token HEC
  • Audited yes
  • DAO yes
  • Yield farming yes
  • Team private
  • Hacks no





Token profile

Price Market cap.

Last updated: Aug 15, 2023

What is Hector Network?

Hector Network (formerly known as HectorDAO) is a decentralized utility ecosystem built on the Fantom network. Launched in November 2021, the Hector Network Team has been developing numerous sub-projects for its ecosystem. These include the TOR stablecoin, Hector Cross-chain DEX, Atlantica NFT Marketplace, Hector Launch, Hector Institute, the Oikos Metaverse, and Hector Pay.

The project's economy is based on the HEC utility token and TOR stablecoin. One of the main aims of the platform is to lower the entry barrier to the crypto industry for newcomers by providing them with inter-connecting blockchain services that put the user in control of their wealth.

How does Hector Network work?

The Hector Network utility ecosystem consists of several core products and a Treasury managed through community voting. Some of these products are already up and running and can be found in the left panel of the Hector App, along with information about some of them, while the rest remain in development, as of the time of writing this review. The Hector Network Roadmap is available to view when certain subprojects and goals are set to be achieved.

Hector DEX is a cross-chain DEX aggregator that allows users to exchange their tokens on multiple chains. As of this writing, available networks include Avalanche, Fantom, Ethereum, BNB Chain, Moonriver, and Polygon

The platform also offers services typical for DEXes such as staking, farming, and token wrapping. One of the platform’s outstanding features was bonding. Through it, users were given discounts when buying tokens directly from the project in exchange for certain coins. The protocol sold and offered bonuses in the form of other tokens, such as DAI, in exchange for discounted HEC tokens, that were then gradually released to them. As of this writing, the operation of this product is frozen, but early on, bonding was one of Hector Network's primary revenue streams, funding its liquidity.

Hector Institute is a decentralized platform for cryptocurrency lending and borrowing. The feature allows users to borrow cryptocurrency or lend their assets to earn a passive income through them. Borrowers can use wrapped sHEC (staked HEC), or wsHEC, as collateral to borrow stablecoins and use them in various projects without having to unwrap their tokens. Hector Institute was built in partnership with Ola Finance.

The TOR Algorithmic Stablecoin is said to be the backbone of the Hector ecosystem. 

TOR (Tyche Owned Reserve) is an ERC-20 fully collateralized stablecoin with a flexible supply, which is defined by the balance of TOR in a curve pool consisting of equal shares of DAI and USDC stablecoins.  When the percentage of TOR token falls below 45% in the curve pool, users can mint TOR tokens and hence rebalance the pool. On the other hand, when the demand for TOR is low and the pool consists of more than 65% TOR, redeeming is available. In such a manner TOR is said to be protected against de-peg or a flooded market.  100% of the DAI used as collateral when minting TOR goes to the protocol’s treasury. 

The second backing layer is represented by the Hector Network Treasury. Even though HEC’s price does not have a great impact on TOR’s minting/redeeming process in Layer 1 networks, if the HEC price decreases more than expected, the treasury is said to start buying back and burning HEC to stabilize its value. 

Hector Network’s projects still under development include their NFT Marketplace, Atlantica, and Hector Launch.

Atlantica, an NFT trading platform, is planned to launch in the fourth quarter of 2022. Although the beta version of it will initially be hosted exclusively on the Fantom network, the project will eventually allow NFTs to be traded between various networks. Along with the Atlantica Marketplace, there will be a launch of an NFT collection dubbed “Mythos”, Hector Network's flagship NFT collection.

Hector Launch will be an incubator and launchpad for future projects. Developers will be able to leverage the Hector audience and partnership connections by offering exclusive access to their projects to HEC stakers. They will also have access to the "Liquidity as a Service Owned Protocol" offering, allowing them to create liquidity for their projects. The benefit to the community will be that an “HEC staker” status will give them early access to a list of upcoming projects launched online.

How to use Hector Network?

The Hector Network runs on the EVM-compatible Fantom blockchain, meaning that to connect to Hector Network’s sub-projects, wallets supporting ERC-20 tokens can be used. Wallets such as Metamask, Coin98 Wallet, Coinbase Wallet, and many others are ready to connect into any project that is live in their utility ecosystem.

At the time of writing this review, the two main Hector apps available for use are the Hector dApp and the Hector Institute, both of which can be accessed from the main Hector front-end interface. 

The Hector dApp concentrates all the main ecosystem products in one convenient place. These include a dashboard with all relevant information about HEC tokens (price, total supply, treasury size, etc.), staking, bridge, TOR minting, farm, and cross-chain DEX. 

However, the Hector Institute app is hosted on a separate webpage and can only be accessed from the left side tab of the main Hector platform. It is a classic liquidity protocol where users can borrow and lend cryptocurrency by providing sufficient collateral. When using the protocol, users should pay attention to parameters such as Collateral Factor, Liquidation Factor, Liquidation Incentive and Reserve Factor. The values of these parameters depend on each specific token. 

Hector Network staking

HEC token staking is done only on the Fantom blockchain. When depositing tokens into the staking smart contract, the user automatically receives sHEC (staked HEC) in return at a 1:1 ratio. After that, the user's sHEC balance automatically increases each epoch (rebasing is every 8 hours) based on the current APY. sHEC tokens can be exchanged at any time on the platform for HEC at a 1:1 ratio. Users can withdraw their tokens from staking at any time, with sHEC being burned when obtaining an equal HEC balance.

The HEC token

Hector Network has a utility cross-chain token named HEC, which was launched on November 1, 2021, on the SpookySwap decentralized exchange. The project’s token was initially launched without a wide marketing campaign, thus knowledge of the token’s existence was done from word of mouth. A large part of the initial distribution of the HEC token came from the bonding service that was deployed from the start. The HEC token began on the Fantom network to which in August 2021, the integration into the Binance Chain BSC was completed. 

The HEC token’s use case includes staking as well as governance of the platform. Another important utility of HEC is the minting of Hector Network's own fully-collateralized stablecoin TOR. When TOR was first introduced, a portion of the coins used to mint TOR went to buy back HEC on the open market, which was then burnt. This made HEC a deflationary token. However, on March 29, 2022, the Hector Network Community voted to begin an emission plan to create a fixed supply cap for the HEC token. 

Is Hector Network safe?

Hector Network was audited by CertiK in January 2022, the auditing team found ten issues, only one of which was flagged as “major”. The issue presents a centralization risk according to CertiK, as in each of the audited smart contracts there are single roles that have authority over numerous functions, representing a hacking risk if compromised. According to the audit file, the Hector Network team has only partly resolved these issues. 

Another audit done by CertiK in March 2022 found no critical vulnerabilities, however, there were two major issues. One of these was once again connected to the centralization of power over multiple smart contract functions in a single role in various contracts. The team responded that the contract's owner has been put under a multisig wallet provided by Gnosis Safe on the Fantom blockchain and that there are further plans for a governance contract that would vote on updates of the protocol’s parameters. The other major issue that was found, was said to be exploitable under a scenario where the smart contract’s renounce ownership can be “owned again”. The response from the Hector Network team conceded the potential risk but also acknowledged that the owner of this contract is the multisig account.

Later due to changing the mechanics of the backing of the project’s stablecoin - TOR, to ensure the token is fully backed by Treasury funds and cannot be exploited in a way similar to what happened with Terra’s stablecoin, a new audit was requested from CertiK.

The audit in question was completed by CertiK in July 2022 and provided a report with no critical issues that included two major ones. One of these was another centralization risk acknowledged by the Hector Network team through a comment asserting that the contract in question will be owned by a timelock contract owned by a 5-out-of-9 multisig in the near future. The other major issue provided a scenario where renounced ownership can be owned again. The vulnerability was resolved by the Hector Network applying the recommendations provided by CertiK.

Hector Network’s most recent audit was done by CertiK in August 2022 and had no critical issues but included two major ones. One of them was another centralization-related issue acknowledged by the Hector team with a comment that it has a plan for a governance contract to vote for updates of the parameters for the protocol. The other major issue reported was the farming smart contract of the project not distributing the full amounts of the rewards. The Hector team resolved this issue by changing the way the RewardRate function was calculating the remaining rewards and reward duration.

The Hector Network team is anonymous.


Hector Network has established strategic partnerships with projects such as SpookySwap and Yoshi.exchange, as well as the PayBolt payment ecosystem, Weave Financial and Rari Capital. The project also has a partnership with Borussia Dortmund, a German Bundesliga football club. Hector Network is a team's partner for the 2022/23 season.

What's next?

The Hector Network team is actively working to introduce new products for its ecosystem. For the second half of 2022, they plan to launch the NFT Marketplace Atlantica, the Atlantica NFT Launchpad, Hector BFT: Mythos Collection, Hector Library, Hector Launch, the Oikos Metaverse, and Hector Pay. Continuous work will well flow into 2023 and beyond - the Hector Network is set to play the long-term game with their vision and strategies ready to deploy.




Frank Stewskid

Frank Stewskid

Last updated: Aug 15, 2023

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