Borrowing and Leverage
Last updated
Last updated
H3RMES Protocol has a built-in time-based borrow and leverage system that allows users to borrow $OS or $S using ecosystem tokens as collateral. It can be found . Borrowing has no inherent liquidation risk, but does come associated with the typical borrow (interest) rates.
When the full H3RMES protocol is live, users will be able to borrow $OS or $S using several different ecosystem tokens: $H3, $xH3RMES, and V3 liquidity positions as collateral. However, during the TGE, users will only be able to leverage $H3RMES. There will be size (position size) constraints that vary from day to day, and even user to user.
By utilising the H3RMES leverage system, users will be able to automatically 'loop' their holdings in a time-based position. This allows the user to increase their exposure to H3RMES with no liquidation risk. The position must be paid back within the chosen time period or it will be closed automatically, and the collateral will be burnt. You can find the H3RMES leverage page .
Leverage $H3RMES as collateral
Live from TGE, with size limits. Size limits will increase daily during TGE, enabling users to size up appropriately as the price of H3RMES increases
Borrowing $OS or $S using H3RMES and xH3RMES as collateral
Using xH3RMES as collateral will be available after the TGE has finished, and will take over as the main utility of the borrow function until V3 collateral is enabled.
Borrowing $OS or $S using V3 LP positions as collateral
Using V3 LP positions as collateral is a custom H3RMES function, and a lot of testing is required to make sure that it cannot be exploited.
Feature launch is TBA, but will be a huge step towards what we see as the future of DeFi yield.
Combining V3 leverage with BentoBox V2 will unlock yields that are generally unheard of in bluechip protocols.
Borrowing using H3RMES protocol varies depending on how long you decide you want your time based loan to last. The sooner you repay it, the cheaper the loan will cost to finance.
Borrowing for 0-24h: 1.1%
Borrowing for 365 days: 5%
A linear function controls fees for everything in-between.
The H3RMES lending function allows $S or $OS to be borrowed, using H3RMES ecosystem tokens as collateral. Borrowing opens up a world of opportunities in both in and out of the H3RMES ecosystem be enabling users to maintain exposure to H3RMES, but utilise the liquidity elsewhere. The borrowing function will be disabled during the TGE, and slowly opened up as the ecosystem develops. You can find the H3RMES leverage page .
