TreasuryActivity-2.md

1. Users buy bond

Users buy bond to build up Treasury with either BUSD or HECTA-BUSD LP token. HECTA smart contract will mint new HECTA for User and Investment Fund and Community Reward

1A. Users buy LP Bond

graph LR
 User --> |1. Transfer LP|TreasuryLP[Treasury_LP]
 User ==> |2. Interact|HECTA[HECTA contract]
 HECTA --> |3. Mint 1x HECTA|User

 HECTA --> |4. Mint 4.5x HECTA|CommunityReward[Treasury_Community Reward]
 HECTA --> |5. Mint 1x HECTA|Investment[Treasury_Investment Fund]

1B. Users buy BUSD Bond

graph LR
 User --> |1. Transfer BUSD|Investment
 User ==> |2. Interact|HECTA[HECTA contract]
 HECTA --> |3. Mint 1x HECTA|User

 HECTA --> |4. Mint 4.5x HECTA|CommunityReward[Treasury_Community Reward]
 HECTA --> |5. Mint 1x HECTA|Investment[Treasury_Investment Fund]

2. Guardian optimizes Invesment Fund

2A. Guardian optimizes Investment Fund buy selling HECTA for BUSD

graph LR
 Investment[Treasury Investment Fund] --> |1. Withdraw HECTA|Guardian
 Guardian --> |2. Swap HECTA|PancakeSwap
 PancakeSwap --> |3. Receive BUSD|Guardian
 Guardian --> |4. Return BUSD|Investment 

2B. Guardian optimizes Investment Fund buy selling BUSD for HECTA

graph LR
 Investment[Treasury Investment Fund] --> |1. Withdraw BUSD|Guardian
 Guardian --> |2. Swap BUSD|PancakeSwap
 PancakeSwap --> |3. Receive HECTA|Guardian
 Guardian --> |4. Return HECTA|Investment 

3. Guardian spends Community Reward to boost value-added activity

graph LR
 CommunityReward --> |1. Transfer HECTA| Guardian
 Guardian --> |2. Transfer HECTA| AirdropContract

4. Buy Back and Burn

Hectagon was born under a vision of complete transparency with the mission to solve current Web3 investment problems, mainly the centralisation of Venture Capital funding. In order to deliver on that vision, the protocol decided to execute the common practice of Buyback and Burn to HECTA token through Treasury.

There are a number of reasons for implementing a token buyback and burn, but the main reason is to ensure the stability of the protocol. Crypto markets are incredibly volatile, and it’s not uncommon for the token price to swing wildly. We believe the token burn action will make a positive price action to HECTA.

graph LR
 TreasuryLP --> |1. Transfer LP HECTA-BUSD| Guardian
 Guardian ==> |2. Burn LP HECTA-BUSD|PancakePair
 PancakePair --> |3. Transfer HECTA, BUSD|Guardian
 Guardian --> |4. Swap HECTA|PancakeSwap
 PancakeSwap --> |5. Receive BUSD|Guardian
 Guardian --> |6. Swap BUSD|PancakeSwap
 PancakeSwap --> |7. Receive HECTA|Guardian
 Guardian ==> |8. Burn HECTA|HECTA

5. Investment

5A. Investment with no vesting terms and project already issued tokens

graph LR
 Investment[Treasury_Investent Fund] --> |Transfer BUSD|Guardian
 Guardian --> |Transfer BUSD|Project[Hectagon Portfolio]
 Project --> |Transfer Project Tokens|Guardian
 Guardian --> |Transfer Project Tokens|Treasury[Treasury_Project Tokens]

5B. Investment with vesting terms and project already issued tokens

graph TD
 Investment[Treasury_Investent Fund] --> |1. Transfer BUSD|Guardian
 Guardian --> |2. Transfer BUSD|Project[Hectagon Portfolio]
 Guardian ==> |3. Create|FutureToken[a Future Token Contract for each Release Event]
 FutureToken --> |4. Mint Project Future Token|Treasury[Treasury_Project Tokens]
 Project --> |5. Release Project Token|Guardian
 Guardian --> |6. Transfer Project Token|FutureToken

5C. Investment with vesting terms and project did not issued tokens at the time of investment

graph TD
 Investment[Treasury_Investent Fund] --> |1. Transfer BUSD|Guardian
 Guardian --> |2. Transfer BUSD|Project[Hectagon Portfolio]
 Guardian ==> |3. Create|FutureToken[a Future Token Contract for each Release Event]
 FutureToken --> |4. Mint Project Future Token|Treasury[Treasury_Project Tokens]
 Guardian --> |5. Update Project Token Address|FutureToken
 Project --> |6. Release Project Token|Guardian
 Guardian --> |7. Transfer Project Token|FutureToken 

6. Burn gHECTA for project tokens

Each NFT enable its owners to withdrawal project tokens from the Treasury pro rata to the amount of burnt gHECTA.

graph LR
 User --> |2. Transfer gHECTA|NFT[Treasury NFT]
 User --> |1. Burn HECTA as fee|HECTA[HECTA contract]
 NFT --> |3. Burn gHECTA|gHECTA[gHECTA contract]
 NFT --> |4. Mint a NFT|User