The HERO is a formula-pegged asset on the BitShares blockchain. It’s value is pegged to USD-denominated formular as simple as:

USD since creation of the FED + 5% a.p.r.

The goal of HERO is to provide Honest and Transparent Money. It is backed by transparently auditable equity in an income-producing company, not debt or gold long pilfered from Fort Knox. Honest money on an incorruptible, light speed, smart contract platform might just result in economic superconductivity.

The HERO could become the new flagship of the bitAsset family of financial instruments that use equity in the platform as collateral to back those assets with no human counterparty risk. The consumer no longer needs to worry whether that backing will be quietly diluted, seized, or rehypothecated. They are transparently held in robotically honest escrow - visible for public inspection at all times.

One very important point of the HERO is that anyone can create them. Of course, the HERO is not a printing press for free money, but instead, it requires collateral to obtain them from the BitShares blockchain. In practise, one can also say, they can be borrowed from the BitShares bank by providing bank stock as collateral. The important point here is that the collateral is freely traded, so anyone can obtain it and the HERO can freely be created when borrowing it.

As a consequence, HERO is a Free Currency, that is fully collateralized and backed by a freely traded crypto currency. The issuance of HERO is decentralized and distributed and not controled by governmental monetary policy but still has the advantage of having only little price volatility. In fact, the collateral that backs HEROs value is mathematically pegged to grow by +5% every year.

We here describe the technical details: