Lend & borrow on
Bonzo Finance
The leading lending and borrowing protocol on the public Hedera network — deposit assets, generate real yield, and borrow against collateral with clear, transparent on-chain rules.
Open AppWhy Bonzo Finance
Built for Hedera from the ground up
Most DeFi protocols originated on Ethereum and expanded elsewhere afterward. The Bonzo Finance platform was architected from the start around Hedera's consensus service, delivering sub-second transaction finality and fees measured in fractions of a cent rather than dollars.
Rewards stacked on top of yield
Every deposited dollar earns interest and Bonzo Points at the same time. Points accumulate passively — no staking transactions needed, no lock-up periods required. Early depositors accumulate at an accelerated rate.
Fully transparent risk parameters
Bonzo Finance's protocol makes every collateral factor, liquidation threshold, and reserve factor visible on-chain. Nothing is concealed behind an admin key. You can independently verify all parameters at any time via Hashscan.
Wide asset coverage
Thirteen assets available at launch: HBAR, HBARX, USDC, WETH, BONZO, SAUCE, XSAUCE, KARATE, DOVU, GRELF, PACK, HST, KBL. New listings pass through a governance and risk-review process before going live.
How it works
Connect your Hedera wallet
Click "Connect" in the top navigation bar. The protocol supports HashPack and other HIP-820-compatible wallets. No account registration, no email required — just your wallet address.
Pick an asset to deposit
Browse the All Assets table on the main app page. Each row displays total supply, total borrow, utilization rate, supply APY, and borrow APY in real time.
Deposit and begin earning
Enter an amount, approve the association transaction (required once per Hedera token), then confirm the deposit. Your balance appears in the Supplied panel within seconds. Yield accrues with every block.
Borrow against collateral (optional)
Once assets are deposited, you may borrow any supported token up to the collateral factor limit. Monitor your health factor — keep it above 1.0 to avoid liquidation. The protocol uses a battle-tested model inspired by ERC-4626 vault accounting.
Withdraw whenever you like
There are no lock-up periods. As long as the utilization rate leaves liquidity available, you can withdraw deposited assets in a single transaction. High utilization may temporarily limit withdrawals — repayments from borrowers restore available liquidity quickly.
Key features
Real-time interest rate model
Rates refresh every block based on utilization. Low utilization keeps borrowing costs affordable; high utilization raises rates to attract additional supply. The model is fully deterministic and auditable — similar in design to protocols tested on Ethereum since 2020.
Flash loans
Developers can access any available liquidity within a single transaction at zero collateral — provided the full amount plus fee is returned before the block closes. Bonzo Finance's flash loan interface is compatible with Hardhat testing environments.
Liquidation bot API
Publicly documented endpoints allow anyone to operate a liquidation bot. Healthy competition among liquidators keeps undercollateralized positions resolved quickly and reduces bad-debt exposure for all depositors.
Bonzo Points rewards
Points are credited in proportion to deposited value multiplied by time. No manual claiming transaction is needed during the accrual period. The protocol records balances on-chain so you can audit your own accumulation history.
Frozen-market protections
Governance can freeze individual markets (e.g., STEAM, HST, KBL are currently frozen) to halt new deposits and borrows while existing positions continue to be fully serviced. This targeted approach avoids blanket protocol-wide pauses.
Open analytics
An on-chain analytics dashboard surfaces supply and borrow volumes, utilization curves, and historical APY for every asset. Nothing sits behind a paywall. Third-party dashboards are welcome to consume the Bonzo Finance v1 API.
Cross-network asset support via bridging
WETH and USDC arrive on Hedera through a native bridge integration. Bonzo Finance supports these bridged tokens natively. The team behind Bonzo Finance monitors Solana bridge routes as potential future additions.
Bonzo Finance by the numbers
FAQ
What is Bonzo Finance?
Bonzo Finance is a non-custodial lending and borrowing protocol deployed on the public Hedera network. Users deposit supported assets to earn yield and borrow against posted collateral. The protocol holds no custody over funds — smart contracts enforce all rules automatically, and you retain full control of your private keys at all times. Think of it as a transparent money market, operating 24/7 without a helpdesk involved.
How do I start supplying assets on Bonzo Finance?
Connect a compatible Hedera wallet from the main application, then select any asset in the All Assets table. Click the "Connect" button next to your chosen token, approve the one-time token association on Hedera, and confirm the deposit. Your supplied balance appears immediately. From that point forward, interest accrues with every new block — no further action is needed.
Is Bonzo Finance safe and audited?
Bonzo Finance's smart contracts were reviewed by independent security auditors prior to mainnet deployment. The team behind Bonzo Finance publishes audit reports within the official documentation. Review them before committing funds. No protocol is entirely without risk; always size positions according to your personal risk tolerance. The codebase also benefits from open-source review, a practice validated through years of Hardhat-based testing on EVM chains.
What assets does Bonzo Finance support?
Thirteen markets are live: HBAR, HBARX, USDC, WETH, BONZO, SAUCE, XSAUCE, KARATE, DOVU, GRELF, PACK, HST, and KBL. Three markets (STEAM, HST, KBL) are currently frozen — existing positions continue to be serviced, but new deposits and borrows are paused. Visit the project page for the latest listing status.
Can I borrow if I only hold HBAR?
Yes. Deposit HBAR as collateral first. The protocol assigns HBAR a collateral factor, which determines the maximum borrow value relative to your deposit. Once your collateral is registered, borrow any supported asset up to that limit. Keep a close eye on your health factor — a decline in HBAR's price will reduce it. If it reaches 1.0, liquidation risk begins.
Why should I use Bonzo Finance instead of alternatives?
Bonzo Finance is purpose-built for Hedera. Transaction fees on Hedera are typically fractions of a cent, compared with several dollars on congested Ethereum blocks. Add the Bonzo Points system — which rewards every deposited dollar automatically — and the Bonzo Finance platform delivers a combination that generic cross-chain forks simply cannot match on Hedera natively. Visit the support page for a detailed comparison.
How does the Bonzo Points system work?
Points accumulate in proportion to deposited value multiplied by time. No manual claiming transaction is required during the accrual phase. The longer your assets remain in the protocol and the larger the position, the more points you collect. Redemption mechanics will be announced by the team separately — check the official X account for updates.
What happens if my collateral value drops?
If your health factor falls below 1.0, third-party liquidation bots can repay a portion of your outstanding debt in exchange for a discounted portion of your collateral. This mechanism protects the protocol from accumulating bad debt. You can reduce liquidation risk by maintaining a health factor well above 1.0 — for example, borrowing only 50–60% of