Secured Line of Credit
The first instance of programmatic trustless revenue-based financing
Debt DAO's Secured Line of Credit is a revolving credit facility secured and repaid via on-chain revenue streams. In addition, escrowed token collateral can be deposited to further protect lenders' interests.
It's the first instance of programmatic trustless revenue-based financing.
Some features that directly respond to needs that Borrowers and Lenders highlighted to us:
- Flexibility for Borrowers - no fixed repayment schedule
- Liquidity for Borrowers - draw down at any time
- Flexibility for Lenders - reduce/withdraw available credit at any time
- Security for Lenders - via captive Borrower revenue and/or escrowed token collateral
- Multiple assets - supports the lending of multiple assets per Lender and per loan allowing for ease of syndication (e.g. a loan does not have to be solely in USDC from one party)
- Multiple rates - Lenders can compete on interest rates on the same Line of Credit.