Lending

DegenHive offers HiveAsset owners the opportunity to loan their assets for a fixed amount of liquid-staked SUI. This arrangement provides immediate liquidity to owners without necessitating the sale of the HiveAsset, while also allowing new users to participate in ecosystem governance at a discounted rate compared to purchasing a HiveAsset.

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• Benefits to the users

• HiveAssets Lending flow

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Users borrowing the HiveAssets enjoy the following benefits

1. Governance Power with Yield: Borrowers can stake the borrowed HiveAssets to acquire borrowing power and earn protocol yield in hSUI and HIVE tokens.

2. Entropy points: Having a HiveAsset gives user entropy points based on the HIVE balance / power unlocked by that HiveAsset, allowing user to like / comment on buzzes on the platform and earn BEE tokens.

3. Hive Earnings through New Digital-Asset Mints: If the borrowed HiveAsset allows for minting new digital assets via HiveSkinKraftCap, borrowers can also earn HIVE from users crafting new digital assets on top of the staked HiveAsset.

Making Governance accessible for everyone

In the context of proof-of-stake governance systems, participation often demands purchasing tokens from the market and staking them, creating a barrier for newcomers due to the hefty financial requirements. DegenHive tackles this by allowing users to stake borrowed HiveAssets, reducing the barrier to governance entry and granting access to exclusive protocol features, such as earning protocol yield, without significant financial investments.

For HiveAsset owners, the opportunity to earn by lending their assets provides liquidity without sacrificing ownership. The voting power obtained from staking a HiveAsset is directly proportional to the number of HIVE tokens locked and the stake duration.

With the introduction of the HiveAsset lending market, DegenHive governance is expected to witness increased participation at a reduced cost, compared to direct purchases of HiveAssets and Hive tokens.

Flowchart depicting how borrowed HiveAssets can be used for Governance

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HiveAssets Lending flow

Lending a HiveAsset

Here's an overview of the HiveAsset lending process:

1. Listing the HiveAsset for Lending:

   • The owner provides:

     • The listing price of the HiveAsset.

     • The duration for which the HiveAsset can be staked.

     • The duration of the listing.

2. Borrowing the HiveAsset:

   • Any user can borrow the HiveAsset by paying the specified SUI amount set by the lister. Bidding is not allowed for lending HiveAsset listings.

   • Upon borrowing, the borrower has a limited timeframe to stake the HiveAsset. Once this window expires, staking the HiveAsset for governance power is no longer permitted.

3. Returning the Borrowed HiveAsset:

   • When the lending duration ends, anyone can call the return_borrowed_hive_asset function to return the HiveAsset to its original owner.

4. Staking the Borrowed HiveAsset:

   • After successfully borrowing the HiveAsset, the borrower is given a limited timeframe to stake it. This measure prevents misuse of lending listings, where borrowers might extend the duration by staking the HiveAsset for governance after borrowing it.