More details to come.
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.
DEBT tokens can also be used to pay fees in the marketplace (such as origination fees) and for staking rewards.


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.
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:
  • Community Treasury
  • DEBT token supply
  • More to come
The core team has control over:
  • DAO partnership funds
  • Olympus Pro bonds
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