[PIP-63] PieDAO debt

Thanks to @BlockEnthusiast for providing some of the input on these ideas.

Summary:

PieDAO should explore various financing options to get a better return on stables in the treasury by lending directly to DAOs. This will create a slew of other potential benefits including partnerships, and greater DAO presence.

Background

Our website is here: https://debtdao.org

We’re Debt DAO and we’re bringing Debt to DAOs.

Motivations

Decentralization-as-a-service

PieDAO could potentially offer decentralization and an expanded token base(and hopefully user base) toward DAOs looking toward decentralizing. This could be from directly giving out the interest to Dough holders in the form of governance tokens. This could allow PieDAO to gain access to investment opportunities for DAOs across the ecosystem at attractive APRs.

Diversification for other Treasuries into PieDAO products (or $DOUGH itself)

Diversification of DAO treasuries is an important potential use case for PieDAO products that can be explored under this model. By providing a loan of $PLAY denominated in USD, the DAO can gain immediate exposure to $PLAY while they repay their debt.

Specification:

The PieDAO treasury working group should begin a discussion with Debt DAO to explore potential debt deals for other DAOs. Debt DAO will provide a due diligence report outlining the risks associated with any potential deal, along with the suggested terms to the community.

Pros:

  • Begin exploring ways to seek out better/safer yields for the treasury
  • Help pioneer and shape a new financial primitive (DAO debt)
  • Raise the profile of PieDAO and get more adoption of PieDAO products
  • Start cultivating stronger DAO to DAO relationships with other DAOs.

Cons:

  • Nothing.

There must be some risks like smart contract risks right ?
I just simply don’t believe there is no drawback at all.

1 Like

Can we have a flow diagram over the process?

This’ll depend on the implementation of the loan, but regardless, there will be multisigs to backstop the entire process.

e.g. there is a missed interest payment. A smart contract might begin the process of releasing the collateral, but ultimately it needs to go through a multisig.

It’ll depend on the implementation that’s worked out,