By DeFi
Honey will create lending markets for bridged NFTs so that Ethereum users can take out a loan on their NFT by bridging their NFT to Solana.
Honey X Wormhole: Cross-chain Expansion
Honey DeFi announced a partnership with Wormhole to deploy liquidity aggregation from different networks through a cross-chain expansion.
Honey DeFi announced the update with a tweet and an accompanying Medium article on March 30. According to the article, the goal is not only to expand into other chains but also to enable projects to migrate to Solana. In order to achieve this, Honey will establish lending markets for bridged NFTs. This means Ethereum users will be able to bridge their NFT to Solana in order to obtain a loan on their NFT. For example, if you have a Bored Ape or another native Ethereum NFT, you can deposit it into Honey’s Ethereum protocol or port it to another chain to be collateralized there.
“Being so early on in the development of NFTs and the metaverse means that the market is there for the taking. Partners like Wormhole allow us to grow aggressively into the untapped potential emerging NFT ecosystems”. Honey expresses in the Medium article. “Partnerships like these bring us one step closer to our vision for DeFi protocols. Users shouldn’t have to worry about what chain they’re currently on or where they can get the best rates”.
Honey DeFi is expanding into both developed and developing NFT ecosystems. In this way, according to the announcement article, they will be establishing a position as the leading source of liquidity for NFTs in the crypto sector. Honey DeFi will be deployed on Ethereum and other L1s in the coming weeks, allowing Ethereum NFTs to receive instant loans.
Among the key components to this expansion is the Wormhole Portal bridge, which is essential for maintaining governance across the many networks they support. That is, Solana $HONEY tokens can be bridged to Ethereum and support voting and governance on both chains natively.
What is Honey DeFi?
Honey Protocol allows NFTs and metaverse assets to be used as loan collateral, allowing you to use capital in your NFT collection. In addition, Honey enables users to participate in DeFi using illiquid assets.
Lenders exchange liquidity for the native token HONEY, which can be staked for protocol fees. Borrowers put up NFT as collateral and pay interest, which is then distributed to HONEY holders.
Honey Finance is managed by Honey Labs and run by Honey DAO. The DAO, which is governed by the Honey token, allows stakeholders to vote on strategy. The Honey DAO is also in charge of the protocol’s treasury, emissions, and insurance funds.
On the other hand, Honey Labs creates the protocol and makes suggestions to the DAO. It is in charge of overseeing day-to-day operations and implementing protocol changes.
Learn more about Honey:
What is Wormhole?
Wormhole serves as a link between Solana and other leading decentralized finance (DeFi) networks. As a result, existing projects, platforms, and communities can seamlessly move tokenized assets across blockchains while benefiting from Solana’s speed and low cost.
Wormhole is a generic message passing protocol that connects to various chains such as Ethereum, Solana, Terra, Binance Smart Chain, Polygon, Avalanche, Oasis, and Fantom.
There are currently two features built on top of the generic message passing protocol, which are as follows:
A token bridge that allows users to bridge wrapped assets between supported chains in real-time.
An NFT bridge that enables the transfer of ERC721 and SPL NFTs between Ethereum, Binance Smart Chain, Polygon, Avalanche, Oasis, Fantom, and Solana.
Learn more about Wormhole:
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Source web3wire.news
