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.
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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