Borrow with No Interest/No Liquidation Risk

Using hiBERO as collateral as delineated in the preceding section, the bonding curve's mechanism ensures the perpetual backing of 1 BERO by a minimum of 1 HONEY. This innovative setup underpins a borrowing mechanism, particularly relevant when utilizing hiBERO as collateral. Given that the value of 1 BERO consistently equals or exceeds 1 HONEY, holders of hiBERO can effectively borrow up to 1 HONEY (at a 2.5% fee) for each hiBERO they have staked. This borrowing process unfolds without any exposure to liquidation risk, as the borrowed HONEY's valuation is perpetually safeguarded by BERO tokens.

The absence of liquidation risk and the omission of interest engender a borrowing experience that's both appealing and devoid of undue stress for users, setting it apart from traditional DeFi lending platforms. Furthermore, the design of the system obliterates the potential for non-performing debt, as the value of BERO tokens constantly remains equivalent to or surpasses the borrowed HONEY, thereby ensuring the stability of the protocol.