Migrating Liquidity to Arbitrum

Voting ended over 3 years agoFailed

TLDR;

DeFragDAO is proposing bridging liquidity (raised from the minting of Metamaticians) from Ethereum Mainnet to Arbitrum. The liquidity will jumpstart the first underwriting pool for TreasureDAO's Genesis Legions collection. This will enable Genesis Legion NFT holders to get instant loans and Metamatician holders to start accruing lending protocol fees.

Introduction

DeFrag is a lending protocol where borrowers can use NFT assets as collateral to get an instant loan. This works by allowing borrowers to tap into the liquidity provided by the underwriters to get instant loans without negotiating peer-to-peer loan terms. Underwriters pool liquidity to earn fees.

Initial Underwriting Pool

DeFragDAO is proposing to use minting proceeds from Metamatician NFTs to jumpstart the initial underwriting pool for TreasureDAO's Genesis Legions.

Each Metamatician NFT will have a proportional stake in this pool, earning fees from borrowers.

As of October 10th 2022, ~222 ETH has been raised. This liquidity is currently on Ethereum mainnet.

Next Steps

The lending protocol will be deployed on Arbitrum therefore liquidity from mainnet will need to be bridged over. The best way to do this is to transfer ownership of the Metamatician NFT Smart Contract to a multisig wallet composed of 4 DeFrag Council Members with 3 of 4 signatures required to execute.

Upon the passing of this proposal the funds will be moved from the multisig on L1 into our initial underwriting pool on Arbitrum.