I’m William from Debt DAO.
We’re building a marketplace to provide debt financing solutions for growth-stage DAOs. This enables them to accelerate their growth with less dilution of their token value.
We’d like Angle, agEUR and its future products to benefit from the marketplace.
agEUR is a good currency for borrowing and Angle as a protocol might find it useful to take out a loan.
We’ve already partnered with Frax and Olympus and have many more exciting partnerships in the pipeline.
The value of Debt to DAOs
DAOs rarely raise funding via debt. This is largely because their options aren’t clear.
For growth stage DAOs with product market fit, onchain revenue and strong communities, debt is a far superior capital efficient option to fund operations and acquisitions.
It’s a much better bet than just selling more tokens to pay contributors or to rent liquidity. We’ve expounded on that here.
Whilst the likes of Olympus Pro has improved this situation somewhat, that still involves selling tokens. This is dilutive, and isn’t always the best approach.
If a growth stage DAO has revenue, and can take out a credit line to fund its working capital and reduce the need to dilute. This would be facilitated by the spigot, a mechanism we’re building out that trustlessly allows for the collateralization of current and future on-chain cash flows.
Proposal to Angle
- Partnering for DAO Payrolls
One area that I’d like to point out as particularly interesting as an area for collaboration is the usage of agEUR for payroll. We’ve been pushing the payroll angle with a recent channel partnership with Utopia labs, with more coming soon.
In conjunction with some of the work that Angle is doing on Fiat offramps, providing access to agEUR via payroll financing will be a very compelling option for DAOs to take on debt for the purposes of paying contributors.
- agEUR liquidity in our lending pool
Angle provides 20k agEUR liquidity to our Fuse Pool #122, secured by collateral to be posted by DAO borrowers in an external multisig.
The obvious benefit here is that this represents a further use case for agEUR, establishing it as an option for DAOs that have expenses in Euro.
- Protocol Owned Liquidity
Exploring fyFRAX (a Frax denominated zero coupon bond, funded by Frax) in order to build up PoL for Angle.
Angle can then use this for a variety of purposes, chiefly building up cross chain liquidity.
- Potential for a token swap to ensure alignment between the communities
- Additional deposits from Angle into our lending pools, whether it be via treasury deposits or via a future Module integration
- Angle could incentivise people who deposit agEUR in a Debt DAO lending pool (pending audit of contracts). Depositors could receive a deposit token that can be staked to receive ANGLE incentives.
The team at Debt DAO would like to thank the Angle Community for considering this proposal. We hope that we can work closely with Angle on onboarding many new DAOs and empowering a new wave in how DAOs get financed.
(the forum software doesn’t allow me to put more than two links)