Overview
Hector Finance was one of many OlympusDAO forks that proliferated in late 2021 and early 2022. Deployed on Fantom, the protocol offered extremely high staking APYs through rebase mechanics — the (3,3) meme that encouraged users to stake and hold while the protocol inflated its token supply. Like virtually all OHM forks (Wonderland, Klima, etc.), the model proved unsustainable. Yields compressed, the token price collapsed, and TVL evaporated. The team attempted several pivots (cross-chain expansion, real yield products) but none gained traction.
Smart Contracts
Standard OlympusDAO fork contracts — bonding, staking, and rebase mechanisms. The contracts were functional but unoriginal, copied from OlympusDAO's open-source codebase with minimal modification. Later pivot attempts added new contract modules, but these were abandoned along with the pivots themselves.
Security
Minimal security infrastructure. OHM fork contracts were widely deployed with varying degrees of audit coverage. Hector's specific contract security is difficult to assess given the multiple pivots and contract deployments. The project's end-state renders security evaluation moot.
Liquidity
Effectively zero. The HEC token has no meaningful liquidity on any venue. The protocol's treasury — which was supposed to back the token — has been drawn down through various expenditures and the general collapse of the protocol. Any remaining tokens are essentially worthless.
Adoption
Dead. No active users, no community activity, no development. The protocol went through the typical OHM fork lifecycle: hype → high yields → declining yields → panic selling → death spiral → pivot attempt → failure → abandonment.
Tokenomics
The OHM fork tokenomics model is now widely recognized as unsustainable — high rebase rates inflate supply geometrically while demand follows a one-time S-curve. The result is inevitable token price collapse. Hector's tokenomics followed this exact pattern. Protocol-owned liquidity was insufficient to maintain the backing ratio as the token cratered.
Risk Factors
- Project is dead — there is no investment thesis, only losses to realize
- OHM fork model has been conclusively proven unsustainable
- Treasury has been drawn down with questionable governance
- Multiple failed pivots indicate no viable path forward
Conclusion
Hector Finance is a dead OHM fork that followed the exact trajectory predicted by critics of the (3,3) model. The 1.0 score reflects complete failure. This project exists only as a case study in unsustainable tokenomics and the dangers of chasing rebase yields.