I think it would be awesome if there is a way for holders of HNY to lock up their HNY and borrow against it. Since we are on the xDai chain, borrowing the xDai stable coin makes sense.
HNY holders in need of cash but are reluctant to sell off their HNY because of its potential and the need to keep supporting the 1Hive project or for whatever reason will no longer be forced to sell it off, this is especially true for active bees within the 1Hive ecosystem.
Since HNY is on the xDai chain and no such service currently exists on xDai, i am thinking this will be good for HNY. Holders of other xDai tokens and are already on the xDai chain who want to invest in HNY and at the same time cash out from the tokens they hold can swap them on honeyswap for HNY and then borrow.
I believe we can build this platform. I don’t think this will be too hard to implement as there are already similar products out there that are reliable which we can fork.
There are many reasons why this is good for the HNY ecosystem
- It’ll give people a reason to hold HNY and still benefit without selling.
- revenue for the DAO generated from interest from the loans.
- reduced HNY sell offs and thus encourages price appreciation
- Motivate more spirited efforts from borrowers in working towards making HNY more valuable(hopefully) since collateral is HNY.
- Income for bees that’ll work on this project
- This is part of positioning HNY as the go-to token in the xDai ecosystem.
I am aware this write-up might be narrow but at least you guys get the idea. Hopefully with more input and fine-tuning we can get this up and running, so what do you guys think?