Hermes is a non-custodial protocol in the Metis ecosystem. The primary goal of Hermes Protocol is to enable users and other decentralized protocols exchange both volatile assets ($DAI to $WETH for example) and stablecoins ($DAI to $USDC for example) through it with low fees and low slippage. Unlike existing exchanges that match a buyer and a seller, the behavior of Hermes is different, it uses liquidity pools like Uniswap. To achieve this, Hermes needs liquidity (tokens) which is rewarded by those who provide it.
$HERMES token is a governance and utility token for Hermes Protocol. All those who have participated in the Hermes pools will retroactively receive $HERMES tokens. The main purposes of the Hermes token is to incentivize liquidity providers on Hermes Protocol as well as getting as many users involved as possible in the governance of the protocol. Liquidity providers on the Hermes platform receive ￥HERMES for providing liquidity. This ensures the protocol continues offering low fees and extremely low slippage.