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