HourGlass

Overview

HourGlass is a DAO Convertible Bond Market. HourGlass Bonds are fully on-chain and permissionless. Our bonds allow DAOs to borrow at a fixed-rate without liquidation risk. HourGlass Bonds have specific redemption rights and obligations that make them the friendliest form of financing for DAOs.
Participant
Rights & Obligations
Issuer
The right to redeem the bond before maturity by repaying the loan 
The obligation to set the interest rate at bond activation 
Holder
The right to redeem the bond for DAO tokens after maturity (in the event that the issuer doesn’t repay) 
The right to redeem the bond for stablecoins at any point after the issuer repays
Issuers (typically DAOs) are afforded the following benefits: 
Can issue bonds at interest rates cheaper than market rates 
Do not risk losing ownership of their DAO tokens as long as they can repay their loan
No liquidations or margin-calls
Bond holders meanwhile are afforded the following benefits: 
Protection from market volatility & borrower-default
A fixed interest rate investment  
Possibility of early redemption for stable tokens
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Participant	Rights & Obligations
Issuer	The right to redeem the bond before maturity by repaying the loan The obligation to set the interest rate at bond activation
Holder	The right to redeem the bond for DAO tokens after maturity (in the event that the issuer doesn’t repay) The right to redeem the bond for stablecoins at any point after the issuer repays

The Process

Last modified 6mo ago

HourGlass

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