Thanks to the bonding curve (explained earlier), every BERO token is always backed by
at least 1 HONEY. This sets up a super cool borrowing system when you use hiBERO as
collateral.
Here’s how it works:
● Borrow HONEY Safely: If you’ve staked hiBERO, you can borrow up to 1 HONEY
per hiBERO (with a small 2.5% fee).
● No Risk, No Stress: You won’t lose your tokens (no liquidation risk) because
BERO’s value is always at least equal to the HONEY you borrow. The system
guarantees it!
● No Interest: Unlike most lending platforms, you don’t pay extra over time—just the
one-time fee.
Why It’s Awesome
This setup makes borrowing easy and worry-free. Traditional DeFi lending can be risky or
expensive, but here, there’s no interest to pile up, and your collateral is always safe. Plus,
the system stays strong because the value of BERO never dips below the HONEY you
borrow—no bad debt, just stability