Debt DAO

The protocol will allow DAOs to access undercollateralized loans or lines of credit secured by on-chain cash flows, such as DEX trading fees.

Basics

• Based in:
• Started in / Announced on:
• Testnet release:
• Mainnet release: not live yet (15-4-2022)

Audits & Exploits

• Bug bounty program can be found [insert here].

Governance

Admin Keys

• From the docs (7-2022):

"The core team has control over:

1. DAO partnership funds
2. Olympus Pro bonds"

DAO

• From the docs (7-2022):

"There are many types of debt products with different management needs so Debt DAO should not have a monolithic governance structure. The reasoning behind the Marketplace structure is governance minimization and innovation maximization. Which deals get made, interest rates, etc. is all decided directly between lenders and borrowers.

Aspects of the DAO that are governed by token holders are:

1. Community Treasury
2. DEBT token supply
3. More to come"

Token

Utility

• From the docs (7-2022):

"DEBT is a utility token more so than a governance token. It's a utility token because in order to participate in the Debt DAO Marketplace, you must hold DEBT tokens. Holding DEBT tokens and getting access to our community and Marketplace ought to lead to better rates for borrowers and more deal flow for lenders. Most importantly it gives everyone within the Marketplace access to shared knowledge and tools around the emerging DeFi lending market."

Technology

• Whitepaper or docs can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on:

How it works

• From the docs (7-2022):

"Debt DAO is not a single entity but rather an open Marketplace of DAOs and DeFi protocols.

Debt DAO's collective focus is to provide the best debt financing to its users in the most efficient way. Through our Line of Credit contract, users can receive credit which can then be utilized to finance DAO operations.

Initially, Debt DAO will focus on revenue-based financing. DAOs and DeFi protocols with on-chain revenue are our initial target borrowers. This approach to crypto-native credit is enabled by our novel Spigot contract. The Spigot creates more secure loans which are automatically repaid by borrowers in a trustless manner."

Staking

• From the docs (7-2022):

"We are currently building out smart contracts to allow a wider variety of lending use cases. DEBT tokens will then be able to be staked to debt contracts to act as a first-loss layer in the event of borrower default. Adding staking will be optional, on a case by case basis if lenders want additional security. In return for providing this security, DEBT stakers will earn a % of all interest payments on the loan. The % of interest paid to stakers will be dynamic based on the total amount of the loan that can be recovered by selling staked assets. On top of interest payments in stablecoins from borrowers. Initially stakers will also earn additional incentives in DEBT tokens from the treasury."

Roadmap

• Can be found [Insert link here].

Usage

• From Bankless (15-4-2022):

"While the protocol is not yet live, the DAO recently struck a deal with [Redacted] Cartel, for a $5 million revolving line of credit."

Team, Funding and Partners

Team

• Full team can be found here (1-8-2022).

Funding

• Dragonfly Capital lead $3.5 million seed round for Debt DAO (1-8-2022).

Partners

• Launched with Olympus, Frax Finance and REDACTED Cartel as partners (1-8-2022).

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