The Cryptocredit Marketplace
The one-stop venue for trustless on-chain credit
This open and permissionless Marketplace connects on-chain borrowers and lenders.
They're threaded together by Debt DAO's smart contracts and the efforts of Service Providers through the entire credit life cycle be it origination, borrower diligence, secondary trading and all the other steps in the financing business.
A Service Provider can be present at any stage in the end-to-end loan life cycle. Here are a few examples.
Teams with significant data analytics & fundamental analysis skills and experience in on-chain treasury management. Risk analysts help lenders in the Cryptocredit Marketplace to quantify the risks present in lending. These risks relate to tech, smart contract security, business models, and financial performance of the potential borrowers.
This could mean building Dune dashboards for revenue streams, compiling operating expense reports, or other financial analysis. A risk analyst could also use our Generalized Cashflow Model built on Credmark to verify project cashflows in the process of setting loan terms.
Examples: Credmark, Credora, Coinshift, Spectral, Llama DAO, Gauntlet Network, DeFi Pulse, DeepDAO, Prime DAO, Numeus, Multifarm, 3TL
Parties with excess capital that they want to lend out. These could be stablecoin providers, money markets, DAOs with large treasuries, crypto funds, or individual whales.
Examples include Maker, Frax, Aave, Olympus, Y2K Finance, Mosaic, Arrakis, Amulet...
On top of new DeFi primitives (i.e. the originated debt instruments) we envisage that Service Providers will create derivative products in the Marketplace (e.g. fixed-rate bonds and structured notes) earning lenders immediate profits and freeing up their capital. Debt DAO's contracts would tokenize and make the debt fungible to facilitate this process.
Examples include Galleon DAO, Index Coop, Notional, Element.fi, BarnBridge, Superform...
The primary role of insurance and coverage protocols is to mitigate risk from protocols, their tokenomics and smart contract bugs. Lenders can take out policies to protect themselves against hacks, defaults, or other events that might lead to financial losses.
Examples: Nexus Mutual, Sherlock