What is Honey Finance? Honey Finance is an NFT Lending platform deployed on various blockchains such as: Arbitrum, Polygon and Solana. Honey Finance enables instant liquidity with loans against NFT collateral or derivative assets. So what’s special about this project? Let’s find out with Weakhand in this article.
Before jumping into the article, you can refer to some of the following projects to gain more knowledge about the NFT Lending market:
- What is BendDAO? BendDAO cryptocurrency overview
- What is NFTfi? Overview of NFTfi cryptocurrency
- What is MetaStreet? MetaStreet cryptocurrency overview
- What is Blend? Perpetual Lending Protocol for NFTs
What is Honey Finance?
Overview of Honey Finance
Honey Finance is an NFT Lending platform deployed Multichain on many different blockchains including: Arbitrum, Polygon and Solana.
Honey Finance deploys many Pools on the platform with each type of collateral having its own Pool. There are 4 main components participating on the platform including:
- Borrowers (Borrowers): Borrow money using your NFTs as collateral. Depending on the collateral, Borrower can borrow different amounts of money.
- Lender (Lender): Provide deposits into Lending Pools to receive automatically accrued interest.
- Admins (Admin): Create lending pools on the Honey Finance platform and set admin fees. Liquidation and interest payments will cover this fee, generating revenue for the administrator. An administrator who can be a DAO, a project or an individual who holds a lot of veHONEY (HONEY is the main token of Honey Finance) can vote to create a new Pool on the platform.
- Bidders (Contractors): Bid on liquidated assets to acquire NFTs at discounted prices.
Honey Finance’s operating mechanism
Honey Finance allows borrowers to combine multiple collateral assets into one loan, increasing the value of the loan.
- On Solana: Borrowers can provide up to 11 collateral for a loan.
- On the EVM chain (Arbitrum, Polygon,…): Borrowers can provide a variety of collateral without limitation.
Sale: Liquidation occurs when the value of the loan exceeds the value of the collateral. The borrower’s entire position will then be liquidated at once, NFTs will be liquidated one by one until the loan returns to a safe level.
What is the difference of Honey Finance?
In addition to implementing the Lending Pool model, Honey Finance has successfully deployed Honey P2P built as a Layer 2 application on top of Honey’s core lending product. Therefore, it can exist independently as a normal peer-to-peer lending market.
In addition to the basic features of the P2P Lending model, Honey Finance deploys a refinancing feature that allows borrowers to borrow or extend their loans.
For example: Barry owns a DeGod with a base price of 13,000 USDC. To get instant liquidity, he used Honey’s P2C loans and received a loan worth 5400 USDC. (40% loan to value). However, Barry wanted to borrow more at lower interest rates by listing his P2C loan on Honey P2P. Barry sets the terms of the new P2P loan: fixed term, fixed interest rate and fixed amount. Barry asks for 12k (92% Loan to Value), for 10 days at 10% interest.
Note: For P2C lending, 70% of the assets provided by the lender are being borrowed. This means that the lender providing $100 only has 70% of their money ($70) used and earning interest. As for P2P loans, if the borrower requests $70, the lender only has to provide $70 meaning the lender earns interest on 100% of their capital.
Core Team
Honey Finance is developed by Honey Labs. Some prominent members include:
Tom J. Pandolfi : Founder & CEO
- Tom graduated with a bachelor’s degree in business administration from the University of Amsterdam.
- In July 2021, Tom became Honey Labs and is currently also the CEO at Honey Labs.
Reid P : COO
- Reid graduated with a bachelor’s degree in computer science from Eckerd College.
- In April 2019, Reid started his business by founding Perkins Solutions LLC – a platform that handles financial security for builders and projects in the DeFi and NFT ecosystem.
- Reid then joined Honey Labs in January 2022 and currently holds the position of COO at Honey Labs.
Investor
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Tokenomics
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Information Channel of Honey Finance Project
- Website: https://honey.finance/
- Twitter: https://twitter.com/honeydefi
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Discord:
summary
Honey Finance is a unique NFT Lending platform that deploys both Lending Pool and P2P Lending models on its platform. This helps users have many choices for the borrowing and lending process. Above is all the information I want to introduce about Honey Finance. I hope everyone has received useful knowledge.