12 Month Loan Term - DAO Flagship Pools

Below is an excerpt from the forum post discussing this topic. This vote is to allow a maximum of 12 month loan terms in the DAO Flagship Pools.

https://forum.truefi.io/t/manager-borrower-proposal-dao-pool-loan-term-12-24-month/1037

Background Asset Pool managers typically engage with counterparties and originators on a term basis. Such agreements feature transaction terms that may range from 6 months to 5 years or longer. Most transactions have fixed expenses such as legal costs (and opportunity costs) that often make longer transaction terms desirable. Shorter terms such as 6-months may work on some assets, but greatly restrict the available asset universe. Many counterparties are unwilling to participate in short term deals due to the financing risk at maturity.

Proposal Suggestion for the DAO pool to accommodate longer term loans: 12-month, 18-month, and 24-month term loans would be a welcome addition and allow for a more diversified set of assets.