This should be a big driver of $BORRO demand as adoption grows.
In the longterm vision for the platform the biggest users are in theory market makers moving size to hedge positions or arbitrage token price gaps thus making the entire robinhood chain financial system more efficient.
Offering fee rebates for a locked amount of $BORRO that scales with how much you borrow is an attractive proposition.
Current $BORRO utility is as follows but of course I'm always open to suggestions.
- buyback and burn: Borro's platform fees buy $BORRO on the open market and burn it.
- lock it, get Borro's platform fees back: lock $BORRO and Borro pays its own fees on your shorts and loans back to you in USDG every week.
- lock it for a boost: lock $BORRO for up to a year and the Drip on everything you lend goes up to 2x.
Hello there, thoughtful thread here, I'm always open to feedback!
One thing to clarify, the $BORRO token is not mintable, it's a fixed cap and ~4% has already been burned. There's ~5% dripping out over the next 2 years to incentivize early users of the platform. So no one can be diluted but there is some sell pressure from rewards claiming although at current usage and rates it's incredibly small ~$30 a day. Only ~$50 of $Borro rewards have actually been claimed and sold so far.
I'll spin up a bot today that uses creator fees to match the amount of the drip that can be sold daily so it'll be buying and burning $30 a day of $Borro and will scale as the rewards increase.
I'm open to suggestions
I think @Borromarkets needs a different logo. No hate on the cassette just think it doesn’t hit in terms of matching the protocols energy /devs commitment.
Love reading these
One week into my Borro experiment.
I’ve been lending MSTR, TSLA and USDG on @BorroMarkets.
Today’s numbers:
Value on Borro: ~$118
Total rewards: ~45,463 $BORRO ≈ $36.37
Claimable: 6,725 $BORRO ≈ $5.38
Calculated at $0.0008 per $BORRO.
Using my current ~$120 position as the base:
1-week return: ~30.3%
Simple annualized APR: ~1,580%
I added funds along the way, so ~$120 is simply today’s position size used as the base. And of course, this APR is just a snapshot of the first week — not an expectation that it stays here.
Still, ~30% against my current capital base in the first week is hard to ignore.
And the part I like most:
I didn’t buy $BORRO to earn $BORRO.
I’m simply putting stock tokens and stables I already hold to work and stacking $BORRO on top.
One week down. I’ll keep running the experiment and sharing the numbers.
Monster truck show was incredible btw. As always thanks for letting me hang with my kids on the weekends.
You guys are amazing.
Brick by brick
Borro is now tracked on @DefiLlama.
Every dollar lent, borrowed and free to borrow on Robinhood Chain's stock loan desk, read straight from the chain.
defillama.com/protocol/borro
There's a new version of this post
Just crossed 40k in deposits and now we've announced the Borro Bookrunners program.
Time to get to work.
Introducing Borro Bookrunners!
Bring deposits to Borro with your code and keep 100% of our fee on them for the first 12 months. Then 50%, for as long as they stay.
On top of that: a 20M $BORRO Bookrunner Drip in year one.
Get your code: borro.markets/bookrunners