Line of Credit Proposal

Considering an increase in the incubation pipeline, New Order is seeking a line of credit of $250K per incubated project. The line of credit will be sourced from DAO treasury funds and will be exclusively used to fund the startup costs of incubated projects. 

Motivation

New Order's mission is to incubate 10-15 projects per year and to build a robust treasury through the token allocations we receive from these projects. Our ultimate goal is to have a treasury which represents the most innovative DeFi protocols in the ecosystem creating value for NEWO token holders. 

In order to achieve this goal, we must be able to provide the resources our incubated projects need to get to market. Currently we have 6 projects in the incubation pipeline that are in need of operational funding in order to continue development and ultimately launch. This line of credit would help cover these costs until we're able to secure investor funding for the projects. This budget would also help us protect the intellectual property of our incubated projects until we're ready to announce our engagement and have it voted on through the DAO.

Implementation

Once this proposal and the subsequent Snapshot vote is approved, a $250K line of credit from the treasury will be opened to each incubated project. The line of credit will be opened in USDC. 

The LOC will be used to give our incubated projects interest-free loans to cover start up costs until they secure funding. Upon closing a funding round, projects would fully reimburse the loan.