DAO Proposal: Rocket

šŸ”„ DAO Proposals
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Hey all!

My goal in MetaCartel was always to meet the best people (which I did) and then start a project that could take some funds from the DAO. Introducing Rocket.

Rocket is an under-collaterized (or non-financially collaterized) #DeFi bank that takes NFTs (instead of DAI as usual) as collateral. Weā€™re mainly a team of 3 people, me, a Solidity dev Elliot and AndrĆ© Pardal for Web/Front-end. Team suspect to evolve/change.

Logo by Peter Pan coming out later this week. This is a prototype just holding NFTs: https://acpardal.github.io/mvp-bank/

Rationale for the product:

  • Overcollaterization like Compound or Maker Vaults only works for rich people
  • 99% of the market (TAM) relies on normal peopleā€™s loans, that have NFTs but donā€™t want to put more money down than borrowed
  • NFTs can be seized and auctioned on OpenSea if lenders default
  • NFTs are valuable: ENS domains, crypto art, Unlock membership

Payments will happen off-chain and decided on a case-by-case basis. Eventually the bank pool will be a DAO for people to put liquidity in.

Asking for 2000 DAI. Most funds will likely go towards borrowers that we think have valuable NFTs.

Thanks and I like all of you. Would love feedback

@AlexMasmej

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lets go to the moon!

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Great concept!

A few off-the-cuff thoughts:

  • Have you looked at Tinlake? Would this be a useful integration? https://tinlake.com/
  • Have you looked at the Union DAO undercollateralized loan protocol? It relies on social reputation on chain to decide on loan recipients.
  • Speak with Jiho from Axie, they might be able to help with some NFT lending liquidity https://twitter.com/Jihoz_Axie

The 2000 DAI request sounds like it will fund the treasury for lending. What sort of interest rates can be expected? Have you asked any for-profit lenders to provide a loan for this?

What is next for Rocket Bank? What needs to be de-risked or learned in the next iteration?

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  • Yes, I have a call with Tinlake founder this week
  • Yes, I have looked at Union and talked to Jacob
  • Yes, my plan is to contact NFT founders to integrate a ā€œborrow againstā€ feature

Thanks!

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  • At least 5% higher than DSR is expected for lenders
  • Yes, at least 50% would be pooled into this
  • Main de-risking will be done off-chain for now (checking the person ourselves). Automating this in some ways is the eventual end goal.
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For de-risking I was referring to product/business idea risk rather than lending risk. What needs to go right in order for this project to viable as a business or non-profit product? What product thesis are you testing in this iteration?

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Vision is to found a startup.

For this to go well, we need two things first:

  • high repayment rate (not many defaults)
  • high interest rate (to be sustainable, but not too high to not scare off / be too hard to repay)

The identity/ā€˜making sure NFTs are valuableā€™ part is fine for now. Doing it on a case by case basis, scaling after.

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Proposal has been created: https://dao.metacartel.org/proposal/72

I am voting FOR this proposal.

Looking forward to the results of this experiment!

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Thank you so much Tom! Thanks a lot for your continued support since Berlin, keep crushing it w/ Mosendo!

1 Like