Honey Finance (HONEY)

Honey Finance (HONEY) is a decentralized finance (DeFi) platform that facilitates lending and borrowing for NFTs (non-fungible tokens). With Honey Finance, users can create lending pools by pairing any NFT with any fungible token, enabling the issuance of loans within the metaverse. This allows users to obtain instant liquidity on DeFi’s most illiquid assets. Lenders can earn high yields by providing liquidity to illiquid assets, while borrowers gain liquidity for non-fungible tokens. The protocol supports arbitrary collateral, allowing for the collateralization of structured products, yield vaults, bonds, and more, thus creating a new layer of liquidity for financial derivatives.

Besides NFT lending, Honey Finance is developing Insurance Vaults, where users can earn yield by securing the protocol’s liquidations. Yield vaults receive insurance premiums from lenders to protect their capital. Honey Labs, the team behind Honey Finance, is also building Hivemind, a multi-chain pricing product for NFTs. The platform’s native token, $HONEY, rewards users for directing liquidity across its markets, and it is governed by a decentralized autonomous organization (DAO) called veHONEY. The DAO allows stakeholders to vote on strategy, treasury, emissions, and risk parameters for the protocol, while Honey Labs oversees day-to-day operations and version updates.

Honey Labs is actively involved in developing the protocol and proposes changes to the DAO. In addition, it creates privatized lending markets for institutions interested in trading with NFT collateral. Honey Finance aims to provide permissionless NFT lending for everyone, accepting collateral from any collection and not just limited to blue-chip assets. With low rates and liquidation protection, Honey Finance seeks to make NFT lending accessible and efficient in the ever-expanding world of DeFi.