Honey Finance Building Cross-chain with Wormhole

Published on: 31.03.2022

Honey Finance is thrilled to announce its cross-chain expansion, in partnership with Wormhole. Honey Finance integrates the Portal bridge for NFT cross-chain borrowing, lending, and governance!

Since launching NFT staking last year, Honey Finance has quickly grown into one of the largest non-marketplace NFT protocols on Solana. To date, they have counted over $25 million in cumulative TVL on the chain and will continue to add to this figure with a new wave of staking v3 partners after the IDO.

With over 70 staking partners to date, Honey Finance is the most widely adopted staking platform on Solana, and they plan to bring its same functionalities to new communities on Ethereum and EVM.

Cross-chain Future

Honey Finance admires all the work that Solana Labs has put into building this amazing chain, and they will continue to call it home for the foreseeable future. However, Honey Labs is not in the habit of being single-chain maximalists. Their ambitions spread across the broader NFT ecosystem that they can support.

Rather than betting on winners and losers in a multi-chain world, we’re expanding into both developed and developing NFT ecosystems, securing our position as the number one source of liquidity for NFTs across the crypto.

This includes the deployment of Honey Finance on Ethereum and other L1s in the coming weeks, allowing Ethereum NFTs to receive instant loans.

Portal

This expansion is largely made possible thanks to the Portal bridge by Wormhole, allowing us to maintain governance across the different networks they support. Meaning Solana $HONEY tokens can be bridged to Ethereum and support governance and voting natively on those chains.

Wormhole is a generic message-passing protocol that connects to multiple chains including Ethereum, Solana, Terra, Binance Smart Chain, Polygon, Avalanche, Oasis, and Fantom.

Currently there are two features built on top of the generic message-passing protocol including:

A token bridge that allows users to seamlessly bridge wrapped assets between supported chains.
An NFT bridge that allows ERC721 and SPL NFTs to be transferred between Ethereum, Binance Smart Chain, Polygon, Avalanche, Oasis, Fantom, and Solana.

Wormhole enabled lending markets

While their dapp will exist natively on many chains, we also plan to aggregate liquidity from different networks in partnership with the Wormhole team. The goal is not simply to expand into other chains, but also to allow projects to migrate to Solana. To do this, they will be creating lending markets for bridged NFTs. Meaning Ethereum users will also be able to bridge their NFT to Solana to get a loan on their NFT.

If you own a Bored Ape, or another native Ethereum NFT, you will be given a choice between depositing it in our Ethereum protocol or porting it to a different chain to be collateralized there.

Why not pick the Ethereum protocol for ETH NFTs? Wrapped and traditional lending markets will have different amounts of liquidity and utilization, resulting in different rates. This means later versions of our protocol will support users depositing their NFT and getting the best rate from any available network (Ethereum, Solana, Polygon, Near, etc.).

This allows them to create the deepest liquidity for NFTs across all chains and allocate this liquidity in the most capital-efficient way for our borrowers.

Partnerships like these bring them one step closer to their 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. They should engage with a simple UI/UX backed by powerful infrastructure, which abstracts the current complexity of DeFi.

They will open up testing to Honey Genesis Bee holders over the coming weeks and are preparing more articles to explore the synergies between Honey Finance and Wormhole.

About Honey Finance

Honey Finance is the DeFi protocol for NFTs. The platform allows users to extract value from their NFTs, without having to sell them, in order to generate yield or mint more NFTs.

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