Provide 100k DAO GHST for PWN Loans

Discussion thread: https://dao.aavegotchi.com/t/provide-100k-dao-ghst-for-pwn-loans/4556 Vote duration: 1 week

TL;DR

PWN is a hub for peer-to-peer (P2P) loans backed by digital assets, including any ERC-20, ERC-721 & ERC-1155 as collateral, with no risks of liquidation until the loan expires. This proposal aims to set aside 100k GHST to begin with to fund Aavegotchi backed loans on PWN.

As you may have recently heard, PWN and the Gotchi Vault recently announced a collaboration through which Aavegotchis could maintain their utility and be used as collateral on PWN at the same time.

However, as per the feedback on the discussion thread, this proposal aims to put a vote together for the DAO to fund BOTH, Vault gotchis and non-vault gotchis at an agreed LTV, maturity date and interest rate. Providing this liquidity to Aavegotchi holders would reduce sell pressure from holders and provide them an alternative avenue to extract liquidity from their assets during this bear market.

HOW IT WOULD WORK

1. Aavegotchi users can request a loan using their aavegotchi as collateral (on app.pwn.xyz) where they will be able to specify the maturity date and the loan amount requested

2. Aavegotchi DAO treasury will set up an automated collection offer with the following terms for any Aavegotchi that gets listed on PWN. Note: This will only apply to single asset Aavegotchi offers and not bundles or other assets from within the ecosystem (for now) a) Only one DAO funding wallet will be needed so that the standard gotchi deposit and the Vault receipt tokens can both borrow from the DAO b) In order to have a persistent offer on all Aavegotchi and Gotchi Receipt Token backed loans, we would follow the following steps:

i) PWN would deploy a new Gnosis Safe and transfer reserved funds to it ii) PWN would connect a specialized module that would enable PWN or the Aavegotchi DAO to automatically mark a loan offer as “signed”, without the need for reaching the ownership threshold iii) PWN would implement this module and present the DAO with the source codes to check that it cannot do anything, but what was agreed upon iv) PWN will track how many collection offers are currently posted and post new ones in a back of 10 every time there is less than 3 offers v) This would require no involvement from the DAO’s side. As long as there are funds to back the offers, PWN will post new offers and pay the tx gas fees vi) Automated collection process:

• "Liquidations" or transfer of possession of collateral on unpaid loans will not require signing on the DAO’s behalf
• In order to claim repaid loans or defaulted collateral, the Safe will need to call a claim function. PWN can automate this as well with the custom module. PWN will be able to do a batch claim, let's say every week (can be any time period) or after X number of unclaimed loans

3. These would be the terms of the loan a) Loan To Value: Gotchi asset price 400 GHST, LTV 25% - users could borrow 100 GHST against each vault gotchis and non-vault gotchi b) Maturity Date: 90 days c) Interest Rate: 4%

4. The Aavegotchi holder will immediately get a loan offer from the DAO treasury as soon as they list their aavegotchi on PWN. Once the loan offer is accepted, the Aaavegotchi holder will: a) Accept the offer and only then will have to pay for gas fees b) Be able to pay back the loan prior to the maturity date with no early repayment fees c) (For Vault gotchis) Holders will not be able to remove their asset from the Gotchi Vault and during the loan duration, they will still have their aavegotchis petted, rented out and able to collect RF rewards

OUTCOMES

• DAO yield: maximum of 4,000 GHST/year if all 100,000 GHST is borrowed and interest paid
• In the event the user does not repay the loan according to agreed upon terms, the DAO would receive the Aavegotchi or the Gotchi Vault receipt token and would have full rights to the asset
• If there is significant borrowing interest, the DAO could increase the GHST allocation and also consider loans against parcels as collateral

ADDITIONAL INFORMATION Since the collaboration with the Gotchi Vault was announced, PWN has seen some great traction in gotchi holders requesting loans using their gotchis as collateral. In the past 10 days, and as of the 2nd December 2022, there have been 6 gotchi backed loans funded and 19 loan requests created on PWN.

PWN is currently working with more Aavegotchi guilds to provide utility and liquidity support to more Aavegotchi holders. Currently, the DAO would fund any non-Vault Aavegotchis and Vault Aavegotchis however as more and more guilds come on board, PWN will post additional proposals to include the contracts of which receipt token collections to include.