I wanted to get the community’s thoughts on the utilization of the DAO’s treasury funds before putting together a formal proposal on the forum. I’m head of growth at PWN (twitter), an ERC-20/NFT lending marketplace on Ethereum and Polygon with no risks of liquidation until the loan expires.
Less than a day ago we launched our newest feature, the PWN bundler, which gives users the option to bundle fungible and non-fungible assets together and borrow against these in the PWN protocol. A completely independent tool to bundle assets which opens up an incredible opportunity for projects such as Aavegotchi where holders can bundle their land, aavegotchis and any other token/NFT and borrow against these.
I wanted to gauge interest on putting together a proposal for two use cases of the DAOs Treasury:
Issue a bond on PWN: Just like Nation3DAO did earlier this month on PWN, we would propose to use the treasury’s GHST as collateral to issue a bond for expenses over the next few months. We’ve seen interest from other DAOs around avoiding extra sell pressure due to current market dynamics and issuing a bond instead of selling their crypto. The beauty of PWN is that we can accept any token or NFT as collateral therefore no additional work would be required to add GHST as collateral. We could start off with a $100k bond for 6 months to try the protocol out.
Fund Aavegotchi backed loans on PWN: The second proposal/idea would be for Aavegotchi DAO to have a budget of $100k to fund Aavegotchi backed loans on PWN. We would need to resolve who would be the multisig committee and what would the standard terms be.
I’m head of growth at PWN and keen to work with such an active community. Please let me know what you think and and follow up ideas/feedback would be much appreciated!
I don’t think the DAO needs this at this point. We don’t have expenses that we need to sell GHST for. I like the idea of bonds, but it’s too early.
This is more interesting. But could you please give us more information? How liquidations are handled? Why the DAO should be a counterparty in these loans?
Re 1: Issuing a bond on PWN, glad you like the idea of this. Keep PWN in mind when an opportunity does arise
Re 2: PWN is a hub for peer-to-peer (P2P) loans backed by digital assets. PWN users can use any ERC-20, ERC-721 & ERC-1155 as collateral, with no risks of liquidation until the loan expires. There are no liquidations based on price on PWN given the contracts don’t have any external dependencies like on-chain oracles. The terms are set by the borrower and the lender therefore in the case that a borrower defaults on the loan, the lender would keep the collateral.
There are a few different reasons why the DAO could be a counterparty in these loans:
a) DAO Treasury diversification is an important topic for every DAO to survive the bear market and most importantly increase the longevity of the DAO’s treasury. Our goal at PWN is to build the technology that allows that.
b) We see this as a way to support Aavegotchi holders who may need liquidity given the current market circumstances. Therefore, instead of selling their NFTs, they would be able to extract (for example) 30% LTV from their NFTs and the DAO would support them.
