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.

ParticipantRights & 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

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