Enabling decentralized credit markets on Hedera with Bonzo

Problem

While liquidity, trading volume, and core infrastructure provide a strong foundation for the crypto economy, there is a growing need by the Hedera DeFi ecosystem for credit markets with robust lending and borrowing capabilities.

Solution

Bonzo Finance is stepping in to fill this critical gap, providing an essential primitive that’s poised to catalyze the next phase of DeFi growth on Hedera. With Hedera’s high throughput, low fixed fees, and inherent MEV mitigation, Bonzo Finance serves the DeFi ecosystem with a fast, low-cost, and economically efficient experience.

Bonzo Finance’s mission is to build a trusted, reliable, and user-friendly protocol that enables decentralized lending & borrowing — while at the same time mitigating as much risk as possible for the Hedera ecosystem and its users.

Brady Gentile

Founder

Enabling decentralized credit markets on Hedera

This product leverages Hedera’s EVM-equivalent environment, fast finality, and low fees to deliver an efficient, user-friendly decentralized credit market. Supporting HBAR, HTS tokens, and stablecoins like USDC, Bonzo enables overcollateralized lending and borrowing through single-asset liquidity pools with calibrated LTV ratios. Advanced users can also access flash loans for complex DeFi strategies. Seamless wallet integrations—including HashPack, Kabila, and MetaMask Snaps—make the protocol widely accessible.

Verifiable, auditable points program using Hedera Consensus Service (HCS-20)

The team has introduced a transparent, on-chain points program built on the HCS-20 standard, replacing the opaque, centralized systems common across web3. Points earned through lending, borrowing, and protocol participation are immutably recorded via Hedera Consensus Service, allowing users to verify rewards independently. This decentralized approach aligns incentives, strengthens trust, and sets a new standard for open, auditable loyalty programs in DeFi.

The Hedera network’s oracle price feed integrations

To ensure accurate and reliable asset pricing, Bonzo Finance integrates multiple oracle providers including Supra, Pyth, and Chainlink. Redundant pricing sources protect against data failures and manipulation, maintaining healthy loan-to-value ratios and triggering liquidations when required. These feeds are essential to the protocol’s risk management and overall market stability.

The Hedera advantage: Liquidation bot & flash loan ecosystem

Bonzo is cultivating two developer-driven ecosystems—liquidation bots and flash loan tooling—highlighting Hedera’s technical strengths. Hedera’s predictable fees, fast finality, and MEV-resistant architecture create a fair and efficient environment for both automated liquidations and complex flash-loan-powered strategies.

Liquidation bots

Liquidation bots monitor loan health and liquidate positions when collateral values fall below thresholds, earning a reward while protecting lenders. On Hedera, bots benefit from:

• MEV resistance, ensuring fair access for all liquidators.
  
• Low fees, making micro-liquidations viable and reducing borrower penalties.
  
• Fast finality, enabling rapid response during volatile market conditions.

Flash loans

Hedera’s atomic composability and high throughput make flash loans highly effective for arbitrage, collateral swaps, and multi-step DeFi workflows. Every flash loan executes within a single transaction—fully completing or reverting—while low, fixed fees help maintain profitability across a wide range of strategies.

Ushering in DeFi 2.0 on Hedera

Helping drive the next evolution of Hedera DeFi by strengthening liquidity, Bonzo is integrating critical web3 infrastructure, and enabling new protocol layers. These efforts aim to expand Hedera’s TVL, trading volume, stablecoin liquidity, and overall DeFi maturity.

Why Hedera

Bonzo chose Hedera for its high performance, low fixed fees, and EVM-equivalent environment—ideal for scalable, secure lending markets. Hedera’s fast finality, MEV-resistant transaction ordering, and native services like HTS and HCS support efficient asset management and transparent on-chain rewards. Combined with reliable oracle integrations, Hedera enables Bonzo to deliver a fair, resilient, and cost-effective DeFi platform built for long-term growth.