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.
Rights & Obligations
  • The right to redeem the bond before maturity by repaying the loan
  • The obligation to set the interest rate at bond activation
  • 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

Last modified 10mo ago