Borrow the xDai Stable Coin Against HNY

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?


Personally, i don’t think its in the best interest of the DAO for all holders of HNY to be forced to sell their tokens to be able to derive some sought of monetary value from it. We must create a way for people to able to get value from HNY without necessarily selling.

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Good one and I completely Agree and really like the Idea of locking HNY and borrowing xDai. This type of services will definitely helpful for the project as well as the bees who are selling their Honey for other things.

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That would be great. Personally, I intend to keep my HNY and slowly buy more. It would be great to have some flexibility and more options on the platform without selling HNY. :honeybee:

There is a project being worked on to fork Aave rn which would allow people to do this with HNY and many other coins.

So i’ve heard, Awesome! :smiling_face_with_three_hearts:

Lots of 1hive projects in our future. If we can get a rough timeline maybe we can get ahead on the UX and buzz. Any ideas on timing?

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not sure @GreenHornet is working on the contracts last I heard

We need a design for the UI though. I need to look at the existing aave UI, I’ve never used aave before.

Would this cause any potential problem with people doing the following:

  1. lock hny
  2. borrow xdai
  3. use xdai to buy hny
  4. lock that hny
  5. borrow more xdai

rinse and repeat? I don’t know if this is possible or preventable but sticks out as a potential problem maybe

You are forgetting that borrowing comes with the risk of losing your collateral and loans are overcollateralized.

this is fine because the collateralization is always > 100%. say 130-150% for example, so each time less can be borrowed. This is how all defi collateralized lending works on mainnet.

Makes sense, thanks my dudes

Check out the stable coin liquidity, USDC specifically, sharing @boring877 work…


Makes sense since stable coin pairs are the least risky.

That would be a great idea, considering the fact that been a stable coin it posed less risk