Borrow with No Interest/No Liquidation Risk
Last updated
Last updated
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