Proposal Title: Vendor Finance Seeding
Proposal Chain: Arbitrum
Type (Choose one): Funding Proposal
Proposal Author: Netrim
Vendor Finance serves as a peer-to-peer lending platform that ensures a secure environment free from the concerns of liquidation. Some features worth noting are:
No Oracle Dependency
We propose the OATH Token holders to approve the allocation of up to USD 250k (denominated in OATH, ERN or other assets) to be seeded on the applicable pools created in the dapp.
The proposal aims to solve the problem of not having a liquid borrowing/lending market. Through our combination of oracle-less, liquidation-free lending pools, we can facilitate borrowing and lending of OATH and ERN. By solving this problem we are unlocking composability for the token holders.
Just as decentralized exchanges open doors for token trading, Vendor facilitates protocols as well as every day users within the ecosystem to deploy borrowing and lending markets for a broad spectrum of tokens. They are empowered to both capitalize on token price fluctuations as well as access the underlying value of their assets for other investments, all the while maintaining exposure to the underlying collateral asset.
For approximately 1.5 years now, Vendor Finance has been dedicated to providing the DeFi community with an innovative approach to lending - delivering peer-to-peer, fixed-term, fixed-rate, non-liquidation loans without an oracle dependency. These loans are facilitated through isolated lending pools, where the terms are established by unique lenders, and the funds become accessible to multiple borrowers.
- Co-Founder & Lead Smart Contract Developer
- Former Unity and Metamask engineer. Currently security auditor at Consensys Diligence
- Co-Founder & Frontend Developer
- 5+ years of web development and application development. 3 years of web3 development. MEV searcher
- Industry Advisor
- 25 years in professional options trading as well as fund management in tradfi
- Full Stack Developer
- Background in Audio Visual Engineering
- Partnerships Manager
- Formerly Ambassador for Liquifrens by Liquity
- Background in Project Management
Key Objectives & Success Metrics
The proposal aims to generate a composable usage out of both OATH and ERN, either directly or indirectly. Taking into account the increased user engagement seen on the OATH discord we can expect upwards of 75% utilization.
ROI cannot be estimated at this point since that will depend heavily on the strategies used within Vendor. If approved, we will work jointly to advise on the best possible strategy that we see viable.
As a reference OlympusDAO voted to lend 500k AGAINST their gOHM governance token at 5% APR, 6 month duration and 75% LTV. All the funds were borrowed in less than one week.
Length of Engagement & Budget Breakdown
If approved we are aiming for a 3 to 6 month engagement using one or more pools to be seeded by the OATH Treasury, which will allocate up to $250k in a combination of OATH, ERN or any other asset they deem useful.
On top of the currently supported mainstream assets, Vendor currently supports a wide variety of long tail assets that have difficulty in achieving composability. Vendor will act as an advisor on the terms sought after approval and will work with the OATH Foundation to maximize composability without increasing risk unnecessarily.
There is an added risk of integrating/interacting with Vendor contracts, but we’ve taken numerous steps to ensure the safety of our users.
Because of this plus the oracle less nature and non liquidation mechanics within Vendor, we don’t expect a higher risk than what is currently managed by the OATH Foundation.
The assets requested are the start of a long and lasting partnership by providing OATH holders a safe venue to interact with. The assets will NOT be under Vendor Finance control, the OATH Foundation and/or the users that interact with Vendor remain sole custodians since Vendor solution is non custodial.