Author(s):

arentweall#9198

Date Proposed:

09/16/2022

Summary:

The Workstream Leads have finalized a deal with Fluid Labs (Marco & Logan) to acquire their product for a value of 25,000 USD (15,000 $USDC and 66,666 $SAX). This proposal seeks to inform the DAO of the acquisition and seek approval for use of said funds.

Motivation

By acquiring the Fluid product, Goblin Sax achieves the following objectives

• Speed up Goblin Sax’ go-to market for instant loan integrations by offering partners a more lightweight integration mode
• Have our own product/interface to serve future ambitions for Goblin Sax (other NFT finance use cases, etc.)

Deal Terms

Over the last 3-4 weeks, both the Workstream Leads and the Fluid team has gone through several rounds of negotiations, technical due diligence and scoping of the deal terms. We really appreciate the time & effort from the Fluid team and are happy to have reached the final terms below.

Goblin Sax gets

• Current Fluid product (fluidlabs.xyz), which uses the GS API to offer the following features: Connect wallet, View eligible NFTs, Execute loan, Repay Loan
• Modifications by the Fluid team (e.g. re-skinning to GS' branding, minor front-end bugs, new Web3 connect integration, NFTfi SDK integration, API ID attribution for revenue share)

Fluid Labs gets 15,000 $USDC and 66,666 $SAX upon completion of the above.

Why we think this is a good deal

1. We immediately get a ready product , speeding up our GTM for instant loans. This is due to Fluid’s existing product and willingness to make changes.
2. The acquisition price is fair, after assessing alternatives in software development & reviewing the customization scope by the Fluid team.
3. The cash burn is low (uses less than 1/3 month’s USD burn)

Potential Impact:

When this deal is passed, Goblin Sax will have our own loans page, giving us the following impacts:

1. More integrations: Partners can integrate more easily and quickly (i.e. more integrations)
2. More loans: End users can directly take loans on our page
3. Strategic product value: Goblin Sax can extend functionality for new use cases in the future
4. Press: We will do a PR to increase GS visibility and attract more integration partners (i.e more loans in the future)

The impact on our burn/runway is minimal as the 15,000 $USDC burn is less than 1/3 of our monthly budget. The dilution of the $SAX network at 66,666 $SAX is minor as well.

Next Steps

The Snapshot voting process begins now and will end in 4 days.

YES: Approve & proceed with the acquisition of Fluid NO: DO NOT approve & proceed with the acquisition of Fluid