Proposal to Take a Loan out From BendDAO to Max Stake our MAYC

This proposal is to borrow the max amount against our MAYC which is 50% of the current floor price. With current MAYC floor it would be about 7.5eth. We would use these funds to max stake our MAYC

With this loan, the DAO will be able swap the eth for ape coin to max stake our recently acquired MAYC. We will have some ETH left over so we can repurpose it down the line or return it back to Benddao if we don’t end up using all of it.

The full loan must be paid back to Benddao which we plan to use our Dao’s 75% share of the compounded yields to do so.

The risk for default on the loan is very low in our opinion, since in order for that to happen the MAYC floor would need to collapse about 50% and we believe there is a very small likelihood this will actually happen. In addition, BendDAO just increased the borrow amount from 30% to 50% for MAYC which to us shows their confidence in the floor of Mutants and Yuga as a whole. The risk is low, but the reward to get our MAYC max staked we feel is worth it.

Getting this loan for the DAO will allow us to max stake our MAYC and instantly start earning full rewards on it so that those rewards can go to passholders and be compounded for more profits for the DAO and passholders.

What are the details of payment installments? No payment installment. You take an NFT-backed loan and then become a borrower on BendDAO. You can repay any time you like. There is no fixed time period to pay back the loan. But you do need to keep an eye on the loan health factor to avoid liquidation. As time passes, the accrued interest will grow making the health factor decrease, which might result in more likely to be liquidated. ( Taken From BendDAO docs)

I urge everyone to read the BendDAO documents, specifically the Down Payment section and the Liquidation Section

https://docs.benddao.xyz/portal/ https://docs.benddao.xyz/portal/faq/down-payment-faq https://docs.benddao.xyz/portal/faq/liquidation