Hermes is a non-custodial protocol in the Metis ecosystem. The primary goal of Hermes Protocol is to enable users and other decentralized protocols to exchange both volatile assets ($DAI to $WETH for example) and stablecoins ($DAI to $USDC for example) through it with low fees and low slippage. How does Hermes differ from existing exchanges that match a buyer and a seller? It uses liquidity pools like Uniswap. To achieve this, Hermes needs liquidity (tokens) which are rewarded by those who provide it.

What is the $HERMES token? It is a governance and utility token for Hermes Protocol. All those who have participated in the Hermes pools will retroactively receive $HERMES tokens. What are the main purposes of the Hermes token? To incentivize liquidity providers on Hermes Protocol and to involve as many users as possible in the governance of the protocol. Liquidity providers on the Hermes platform receive ￥HERMES for providing liquidity. This ensures the protocol continues to offer low fees and extremely low slippage.