Hector Network Shuts Down, Returns $16 Million to Users

The DeFi project on the Fantom network, Hector Network, has voted to cease operations and return all remaining funds to HEC token holders.

Background

Hector Network, a project that copied the Olympus DAO model, launched on Fantom in November 2021. The network reportedly lost $8 million due to the shutdown of the Multichain bridge, which significantly impacted the Fantom ecosystem.

Decision to Liquidate

In response to the significant losses, the Hector community voted to liquidate the project's remaining assets, estimated to be worth around $16 million, and distribute them to HEC token holders. Most investors opted to cut their losses and receive their funds immediately, rather than pursue a proposal to rebuild the project on a new blockchain under a different name.

Process and Challenges

The liquidation process, including retrieving HEC tokens and compensating investors with stablecoins, is expected to take 6-12 months. This will require hiring liquidation, legal, and auditing services, potentially reducing the actual compensation below $16 million.

Loss of Confidence

The community's lack of confidence in the project's potential relaunch stems from numerous management errors and high salaries for the team, which depleted Hector Network's assets, once valued at $100 million. Following the Multichain incident, some anonymous team members decided to abandon the project and proposed compensating investors.

Market Impact

Since early July, the price of HEC has plummeted by over 60%, while Hector's stablecoin TOR has significantly depegged, dropping to around $0.13.

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