I liked the HBD Bond concept. It creates obvious advantages.
The benefit of a bond to its issuer: Since the maturity of the bond is certain, future liquidity obligations become definite. Thus, Hive can adjust its investments, bond issuances and returns according to its future liquidity needs. It is worth paying an additional premium for it. And as the HBD was obtained by Hive conversion, the value stands within the Hive ecosystem.
Benefits of a bond for the buyer: Buyers earn a higher return on the purchase of a financial product for which they have given up liquidity for a certain period of time. In fact, they did not give up liquidity since they bought a financial product that can be sold on the second-hand market. And they can use that bond as collateral.
Benefit of the bond for the second-hand buyer: They can speculate on the price of that bond. They will probably obtain a premium. They can also use it as collateral.
I really like the idea of selling bonds as NFTs. In Uniswap v3, LPs are represented via NFTs. The concept can be tested by issuing bonds with small volumes and attractive returns at the outset. It would be beneficial to create alternatives with different maturities to address various preferences. Issuing short-term bonds can make selling easier until people get used to the idea.
That is true and a market of trading can open up. Of course, the key point I was making is that we can even go one step further and establish a system of collateralization. That is where the real fireworks enter.
Posted Using LeoFinance Beta
This is a great comment!
Posted Using LeoFinance Beta
Thank you!